FAC Explorer

Audit 297132

FY End
2022-12-31
Total Expended
$2.10M
Findings
6
Programs
10
Organization: Santa Fe Institute (NM)
Year: 2022 Accepted: 2024-03-25
Auditor: Cla (cliftonlarsonallen)

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
384051 2022-002 Significant Deficiency Yes I
384052 2022-002 Significant Deficiency Yes I
384053 2022-002 Significant Deficiency Yes I
960493 2022-002 Significant Deficiency Yes I
960494 2022-002 Significant Deficiency Yes I
960495 2022-002 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
47.079 Office of International Science and Engineering $114,715 Yes 0
47.074 Biological Sciences $112,599 Yes 0
43.001 Science $111,223 Yes 0
47.075 Social, Behavioral, and Economic Sciences $97,282 Yes 0
12.431 Basic Scientific Research $66,000 Yes 0
47.049 Mathematical and Physical Sciences $61,675 Yes 0
47.070 Computer and Information Science and Engineering $42,674 Yes 0
12.630 Basic, Applied, and Advanced Research in Science and Engineering $37,747 Yes 0
45.169 Promotion of the Humanities_office of Digital Humanities $28,552 Yes 0
47.050 Geosciences $0 Yes 0

Contacts

Name Title Type
M8SBQ7NVNAH4 Raul Anaya Auditee
5052223597 Raul Anaya Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SFI has a negotiated indirect cost rate with the National Science Foundation (their lead federal agency) of 57.00%. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Santa Fe Institute (the Institute) under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Institute.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SFI has a negotiated indirect cost rate with the National Science Foundation (their lead federal agency) of 57.00%. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SFI has a negotiated indirect cost rate with the National Science Foundation (their lead federal agency) of 57.00%. Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SFI has a negotiated indirect cost rate with the National Science Foundation (their lead federal agency) of 57.00%.
Title: FEDERAL CLUSTER Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. SFI has a negotiated indirect cost rate with the National Science Foundation (their lead federal agency) of 57.00%. All of the programs in the Schedule are considered part of the Institute’s research and development cluster.

Finding Details

Finding 2022-002
"Control Deficiency – Suspension and Debarment (Repeated and Modified)Condition: During our testwork over Suspension and Debarment, we noted 1 of 6 covered transactions tested for which SFI did not confirm the vendor was not suspended or debarred prior to entering into the transaction. Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Questioned costs: None Context: The prior year corrective action plan had a planned completion date of December 31, 2022, and this covered transaction originated in 2021. Management performed a check at the beginning of 2023, and noted the vendor was not suspended or debarred, but could not substantiate this check retroactively. Cause: Transitions in personnel/management oversight. Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Repeat Finding: Yes Recommendation: We recommend management follow internal processes to ensure that checks are performed to conform with 180.300 of the CFR prior to entering into covered transactions. Views of responsible officials: Management agrees with the finding and has strengthened internal controls to meet the requirement. Management has discussed the requirements with all necessary parties and has instituted the new controls for setting up sub-contracts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Actions planned in response to finding: Management has implemented additional controls to be performed by the Sponsored Research department and VP of Administration office to better monitor and track sub-contractor debarment status prior to their being brought onboard for work with SFI. Additionally, a list of all vendors that needed Suspension and Debarment from the previous year will be reviewed in January of the following year as SFI utilizes vendors over multiple years due to limited availability of vendors to provide necessary services. Responsible party: Suzette A. Fronk, Chief Financial Officer Planned completion date for corrective action plan: September 1, 2023 Plan to monitor completion of corrective action plan: In conjunction with the VP of Administration, Sponsored Research Office, and the Chief Financial Officer, SFI’s Finance Committee will monitor the completion of the corrective action plan. "
Finding 2022-002
"Control Deficiency – Suspension and Debarment (Repeated and Modified)Condition: During our testwork over Suspension and Debarment, we noted 1 of 6 covered transactions tested for which SFI did not confirm the vendor was not suspended or debarred prior to entering into the transaction. Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Questioned costs: None Context: The prior year corrective action plan had a planned completion date of December 31, 2022, and this covered transaction originated in 2021. Management performed a check at the beginning of 2023, and noted the vendor was not suspended or debarred, but could not substantiate this check retroactively. Cause: Transitions in personnel/management oversight. Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Repeat Finding: Yes Recommendation: We recommend management follow internal processes to ensure that checks are performed to conform with 180.300 of the CFR prior to entering into covered transactions. Views of responsible officials: Management agrees with the finding and has strengthened internal controls to meet the requirement. Management has discussed the requirements with all necessary parties and has instituted the new controls for setting up sub-contracts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Actions planned in response to finding: Management has implemented additional controls to be performed by the Sponsored Research department and VP of Administration office to better monitor and track sub-contractor debarment status prior to their being brought onboard for work with SFI. Additionally, a list of all vendors that needed Suspension and Debarment from the previous year will be reviewed in January of the following year as SFI utilizes vendors over multiple years due to limited availability of vendors to provide necessary services. Responsible party: Suzette A. Fronk, Chief Financial Officer Planned completion date for corrective action plan: September 1, 2023 Plan to monitor completion of corrective action plan: In conjunction with the VP of Administration, Sponsored Research Office, and the Chief Financial Officer, SFI’s Finance Committee will monitor the completion of the corrective action plan. "
Finding 2022-002
"Control Deficiency – Suspension and Debarment (Repeated and Modified)Condition: During our testwork over Suspension and Debarment, we noted 1 of 6 covered transactions tested for which SFI did not confirm the vendor was not suspended or debarred prior to entering into the transaction. Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Questioned costs: None Context: The prior year corrective action plan had a planned completion date of December 31, 2022, and this covered transaction originated in 2021. Management performed a check at the beginning of 2023, and noted the vendor was not suspended or debarred, but could not substantiate this check retroactively. Cause: Transitions in personnel/management oversight. Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Repeat Finding: Yes Recommendation: We recommend management follow internal processes to ensure that checks are performed to conform with 180.300 of the CFR prior to entering into covered transactions. Views of responsible officials: Management agrees with the finding and has strengthened internal controls to meet the requirement. Management has discussed the requirements with all necessary parties and has instituted the new controls for setting up sub-contracts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Actions planned in response to finding: Management has implemented additional controls to be performed by the Sponsored Research department and VP of Administration office to better monitor and track sub-contractor debarment status prior to their being brought onboard for work with SFI. Additionally, a list of all vendors that needed Suspension and Debarment from the previous year will be reviewed in January of the following year as SFI utilizes vendors over multiple years due to limited availability of vendors to provide necessary services. Responsible party: Suzette A. Fronk, Chief Financial Officer Planned completion date for corrective action plan: September 1, 2023 Plan to monitor completion of corrective action plan: In conjunction with the VP of Administration, Sponsored Research Office, and the Chief Financial Officer, SFI’s Finance Committee will monitor the completion of the corrective action plan. "
Finding 2022-002
"Control Deficiency – Suspension and Debarment (Repeated and Modified)Condition: During our testwork over Suspension and Debarment, we noted 1 of 6 covered transactions tested for which SFI did not confirm the vendor was not suspended or debarred prior to entering into the transaction. Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Questioned costs: None Context: The prior year corrective action plan had a planned completion date of December 31, 2022, and this covered transaction originated in 2021. Management performed a check at the beginning of 2023, and noted the vendor was not suspended or debarred, but could not substantiate this check retroactively. Cause: Transitions in personnel/management oversight. Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Repeat Finding: Yes Recommendation: We recommend management follow internal processes to ensure that checks are performed to conform with 180.300 of the CFR prior to entering into covered transactions. Views of responsible officials: Management agrees with the finding and has strengthened internal controls to meet the requirement. Management has discussed the requirements with all necessary parties and has instituted the new controls for setting up sub-contracts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Actions planned in response to finding: Management has implemented additional controls to be performed by the Sponsored Research department and VP of Administration office to better monitor and track sub-contractor debarment status prior to their being brought onboard for work with SFI. Additionally, a list of all vendors that needed Suspension and Debarment from the previous year will be reviewed in January of the following year as SFI utilizes vendors over multiple years due to limited availability of vendors to provide necessary services. Responsible party: Suzette A. Fronk, Chief Financial Officer Planned completion date for corrective action plan: September 1, 2023 Plan to monitor completion of corrective action plan: In conjunction with the VP of Administration, Sponsored Research Office, and the Chief Financial Officer, SFI’s Finance Committee will monitor the completion of the corrective action plan. "
Finding 2022-002
"Control Deficiency – Suspension and Debarment (Repeated and Modified)Condition: During our testwork over Suspension and Debarment, we noted 1 of 6 covered transactions tested for which SFI did not confirm the vendor was not suspended or debarred prior to entering into the transaction. Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Questioned costs: None Context: The prior year corrective action plan had a planned completion date of December 31, 2022, and this covered transaction originated in 2021. Management performed a check at the beginning of 2023, and noted the vendor was not suspended or debarred, but could not substantiate this check retroactively. Cause: Transitions in personnel/management oversight. Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Repeat Finding: Yes Recommendation: We recommend management follow internal processes to ensure that checks are performed to conform with 180.300 of the CFR prior to entering into covered transactions. Views of responsible officials: Management agrees with the finding and has strengthened internal controls to meet the requirement. Management has discussed the requirements with all necessary parties and has instituted the new controls for setting up sub-contracts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Actions planned in response to finding: Management has implemented additional controls to be performed by the Sponsored Research department and VP of Administration office to better monitor and track sub-contractor debarment status prior to their being brought onboard for work with SFI. Additionally, a list of all vendors that needed Suspension and Debarment from the previous year will be reviewed in January of the following year as SFI utilizes vendors over multiple years due to limited availability of vendors to provide necessary services. Responsible party: Suzette A. Fronk, Chief Financial Officer Planned completion date for corrective action plan: September 1, 2023 Plan to monitor completion of corrective action plan: In conjunction with the VP of Administration, Sponsored Research Office, and the Chief Financial Officer, SFI’s Finance Committee will monitor the completion of the corrective action plan. "
Finding 2022-002
"Control Deficiency – Suspension and Debarment (Repeated and Modified)Condition: During our testwork over Suspension and Debarment, we noted 1 of 6 covered transactions tested for which SFI did not confirm the vendor was not suspended or debarred prior to entering into the transaction. Criteria or specific requirement: According to §200.303 Internal controls of 2 CFR Part 200, the non- Federal must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Part 180.300 outlines the requirements to verify that covered individuals are not excluded or disqualified. Questioned costs: None Context: The prior year corrective action plan had a planned completion date of December 31, 2022, and this covered transaction originated in 2021. Management performed a check at the beginning of 2023, and noted the vendor was not suspended or debarred, but could not substantiate this check retroactively. Cause: Transitions in personnel/management oversight. Effect: Without appropriate controls in place the organization may entered into an agreement with a covered person or entity that is not eligible. Repeat Finding: Yes Recommendation: We recommend management follow internal processes to ensure that checks are performed to conform with 180.300 of the CFR prior to entering into covered transactions. Views of responsible officials: Management agrees with the finding and has strengthened internal controls to meet the requirement. Management has discussed the requirements with all necessary parties and has instituted the new controls for setting up sub-contracts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Actions planned in response to finding: Management has implemented additional controls to be performed by the Sponsored Research department and VP of Administration office to better monitor and track sub-contractor debarment status prior to their being brought onboard for work with SFI. Additionally, a list of all vendors that needed Suspension and Debarment from the previous year will be reviewed in January of the following year as SFI utilizes vendors over multiple years due to limited availability of vendors to provide necessary services. Responsible party: Suzette A. Fronk, Chief Financial Officer Planned completion date for corrective action plan: September 1, 2023 Plan to monitor completion of corrective action plan: In conjunction with the VP of Administration, Sponsored Research Office, and the Chief Financial Officer, SFI’s Finance Committee will monitor the completion of the corrective action plan. "