Federal Agency: U.S. Department of Defense
Federal Program Name or Cluster: Research and Development Cluster
Assistance Listing Number: 12.RD
Federal Award Identification Number and Year: SP4701-20-C-0076; SP4701-22-D-0120
Pass-Through Agencies: N/A
Pass-Through Number: N/A
Award Period: September 23, 2020 through April 30, 2024;
February 14, 2022 through February 13, 2025
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement:
The Organization is required to maintain controls to ensure the completeness and accuracy of grant reimbursement requests, including the determination of indirect costs. The Organization is also required to maintain supporting documentation for the submitted grant reimbursement requests.
Condition:
Through audit procedures performed, we noted 2 grant reimbursements that were prepared by a single individual without documented review and approval.
Questioned Costs:
None
Context:
Two errors were identified in a total of eight grant reimbursements tested.
Cause:
Unknown
Effect:
Inadequate review or lack of an audit trail for submitted grant reimbursements could result in improper funding received by the Organization from the granting agency.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend that the Organization follow the current policies and procedures over grant reimbursement transactions to maintain documentation supporting the request. This should include all supporting documentation and back-up, and preparer and reviewer sign-offs and dates.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. The Society was short of trained billing staff due to employee leave and has provided training to additional back-up staff for future use.
Name of the contact person responsible for corrective action: Kelly Moritz, Vice President of Finance and Contracts.
Planned completion date for corrective action plan: December 31, 2024
Federal Agency: U.S. Department of Defense
Federal Program Name or Cluster: Research and Development Cluster
Assistance Listing Number: 12.RD
Federal Award Identification Number and Year: SP4701-20-C-0076; SP4701-22-D-0120
Pass-Through Agencies: N/A
Pass-Through Number: N/A
Award Period: September 23, 2020 through April 30, 2024;
February 14, 2022 through February 13, 2025
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement:
The Organization is required to maintain controls to ensure the completeness and accuracy of grant reimbursement requests, including the determination of indirect costs. The Organization is also required to maintain supporting documentation for the submitted grant reimbursement requests.
Condition:
Through audit procedures performed, we noted 2 grant reimbursements that were prepared by a single individual without documented review and approval.
Questioned Costs:
None
Context:
Two errors were identified in a total of eight grant reimbursements tested.
Cause:
Unknown
Effect:
Inadequate review or lack of an audit trail for submitted grant reimbursements could result in improper funding received by the Organization from the granting agency.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend that the Organization follow the current policies and procedures over grant reimbursement transactions to maintain documentation supporting the request. This should include all supporting documentation and back-up, and preparer and reviewer sign-offs and dates.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. The Society was short of trained billing staff due to employee leave and has provided training to additional back-up staff for future use.
Name of the contact person responsible for corrective action: Kelly Moritz, Vice President of Finance and Contracts.
Planned completion date for corrective action plan: December 31, 2024
Federal Agency: U.S. Department of Defense
Federal Program Name or Cluster: Research and Development Cluster
Assistance Listing Number: 12.RD
Federal Award Identification Number and Year: SP4701-20-C-0076
Pass-Through Agencies: N/A
Pass-Through Number: N/A
Award Period: September 23, 2020 through April 30, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement:
Under the Uniform Guidance, organizations are required to document the basis for their procurement. For a single source procurement item tested, the Organization could not support how this procurement met the requirements for a single source procurement.
Condition:
For 1 of 6 procurements selected, the Organization could not support how this procurement met the requirements for a single source procurement.
Questioned Costs:
None
Context:
For 1 of 6 procurements selected, which was a single source procurement transaction, the Organization could not support how this procurement met the requirements for a single source procurement.
Cause:
Unknown
Effect:
The possible receipt of federal funds or assistance by an ineligible contractor.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend that the Organization follow the current policies and procedures over covered transactions and to maintain supporting documentation of the process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. The Society has reviewed the procurement policy with staff, emphasized the importance of following, and will ensure that adequate documentation is retained.
Name of the contact person responsible for corrective action: Kelly Moritz, Vice President of Finance and Contracts.
Planned completion date for corrective action plan: December 31, 2024
Federal Agency: U.S. Department of Defense
Federal Program Name or Cluster: Research and Development Cluster
Assistance Listing Number: 12.RD
Federal Award Identification Number and Year: SP4701-20-C-0076; SP4701-22-D-0120
Pass-Through Agencies: N/A
Pass-Through Number: N/A
Award Period: September 23, 2020 through April 30, 2024;
February 14, 2022 through February 13, 2025
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement:
The Organization is required to maintain controls to ensure the completeness and accuracy of grant reimbursement requests, including the determination of indirect costs. The Organization is also required to maintain supporting documentation for the submitted grant reimbursement requests.
Condition:
Through audit procedures performed, we noted 2 grant reimbursements that were prepared by a single individual without documented review and approval.
Questioned Costs:
None
Context:
Two errors were identified in a total of eight grant reimbursements tested.
Cause:
Unknown
Effect:
Inadequate review or lack of an audit trail for submitted grant reimbursements could result in improper funding received by the Organization from the granting agency.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend that the Organization follow the current policies and procedures over grant reimbursement transactions to maintain documentation supporting the request. This should include all supporting documentation and back-up, and preparer and reviewer sign-offs and dates.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. The Society was short of trained billing staff due to employee leave and has provided training to additional back-up staff for future use.
Name of the contact person responsible for corrective action: Kelly Moritz, Vice President of Finance and Contracts.
Planned completion date for corrective action plan: December 31, 2024
Federal Agency: U.S. Department of Defense
Federal Program Name or Cluster: Research and Development Cluster
Assistance Listing Number: 12.RD
Federal Award Identification Number and Year: SP4701-20-C-0076; SP4701-22-D-0120
Pass-Through Agencies: N/A
Pass-Through Number: N/A
Award Period: September 23, 2020 through April 30, 2024;
February 14, 2022 through February 13, 2025
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement:
The Organization is required to maintain controls to ensure the completeness and accuracy of grant reimbursement requests, including the determination of indirect costs. The Organization is also required to maintain supporting documentation for the submitted grant reimbursement requests.
Condition:
Through audit procedures performed, we noted 2 grant reimbursements that were prepared by a single individual without documented review and approval.
Questioned Costs:
None
Context:
Two errors were identified in a total of eight grant reimbursements tested.
Cause:
Unknown
Effect:
Inadequate review or lack of an audit trail for submitted grant reimbursements could result in improper funding received by the Organization from the granting agency.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend that the Organization follow the current policies and procedures over grant reimbursement transactions to maintain documentation supporting the request. This should include all supporting documentation and back-up, and preparer and reviewer sign-offs and dates.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. The Society was short of trained billing staff due to employee leave and has provided training to additional back-up staff for future use.
Name of the contact person responsible for corrective action: Kelly Moritz, Vice President of Finance and Contracts.
Planned completion date for corrective action plan: December 31, 2024
Federal Agency: U.S. Department of Defense
Federal Program Name or Cluster: Research and Development Cluster
Assistance Listing Number: 12.RD
Federal Award Identification Number and Year: SP4701-20-C-0076
Pass-Through Agencies: N/A
Pass-Through Number: N/A
Award Period: September 23, 2020 through April 30, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement:
Under the Uniform Guidance, organizations are required to document the basis for their procurement. For a single source procurement item tested, the Organization could not support how this procurement met the requirements for a single source procurement.
Condition:
For 1 of 6 procurements selected, the Organization could not support how this procurement met the requirements for a single source procurement.
Questioned Costs:
None
Context:
For 1 of 6 procurements selected, which was a single source procurement transaction, the Organization could not support how this procurement met the requirements for a single source procurement.
Cause:
Unknown
Effect:
The possible receipt of federal funds or assistance by an ineligible contractor.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend that the Organization follow the current policies and procedures over covered transactions and to maintain supporting documentation of the process.
Views of Responsible Officials and Planned Corrective Actions:
There is no disagreement with the audit finding. The Society has reviewed the procurement policy with staff, emphasized the importance of following, and will ensure that adequate documentation is retained.
Name of the contact person responsible for corrective action: Kelly Moritz, Vice President of Finance and Contracts.
Planned completion date for corrective action plan: December 31, 2024