FAC Explorer

Audit 313306

FY End
2022-09-30
Total Expended
$70.78M
Findings
16
Programs
43
Organization: Mriglobal (MO)
Year: 2022 Accepted: 2023-01-29
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
449700 2022-001 - - P
449701 2022-001 - - P
449702 2022-001 - - P
449703 2022-001 - - P
449704 2022-001 - - P
449705 2022-001 - - P
449706 2022-001 - - P
449707 2022-001 - - P
1026142 2022-001 - - P
1026143 2022-001 - - P
1026144 2022-001 - - P
1026145 2022-001 - - P
1026146 2022-001 - - P
1026147 2022-001 - - P
1026148 2022-001 - - P
1026149 2022-001 - - P

Programs

ALN Program Spent Major Findings
12.RD Hhm402-17-D-0004/0001 $16.22M Yes 0
12.RD Fa8075-18-D-0017 $15.05M Yes 0
12.RD N66001-21-C-4048 $8.40M Yes 0
12.RD Base Agreement 2017-380 $4.49M Yes 0
93.RD Hhsn273201400020c $4.38M Yes 0
93.RD Hhsn261201800026i $3.69M Yes 0
12.RD Fa8075-14-D-0006 $1.57M Yes 0
99.RD B20-2020245g001 $1.56M Yes 1
93.RD Sub:75n92020p00132 $1.41M Yes 0
93.RD Hhso100201700015i $1.37M Yes 0
99.RD B20-2020072g001 $1.28M Yes 1
93.RD Hhsn272201700001c $1.28M Yes 0
12.RD N/a $915,162 Yes 0
99.RD B17-2017191g001 $850,624 Yes 1
99.RD B16-2016210g003-003 $616,019 Yes 1
12.RD Hq0034-17-C-0087 $553,957 Yes 0
93.RD Hhsn271201500006i $530,120 Yes 0
12.RD N00024-13-D-6400 $524,612 Yes 0
12.RD Na $444,038 Yes 0
99.RD Sub:32700-0030 $370,091 Yes 0
19.RD 19aqmm20c0213 $333,653 Yes 0
93.RD Hhsn261201800003c $208,566 Yes 0
99.RD B22-2022161g401-001 $129,158 Yes 1
20.RD Sub:hr 07-27 $93,014 Yes 0
12.RD N4175619c3053 $61,515 Yes 0
93.RD 75n93022d00002 $60,303 Yes 0
93.RD Hhsn261201700011i $55,409 Yes 0
12.RD Hdtra1-16-C-0028 $37,173 Yes 0
20.RD Dtfh61-13-H-00024 $24,712 Yes 0
20.RD Nas 16 Task Order 01 $24,393 Yes 0
20.RD 693jj31950006 $23,088 Yes 0
97.RD Proposal No. 834486 R.1 $22,806 Yes 0
12.RD W81xh20c0078 $15,437 Yes 0
20.RD Sub:hr 07-28 (001) $13,498 Yes 0
97.RD 70us0921a70090041 $10,945 Yes 0
12.RD Hq0034-22-C-0090 $8,281 Yes 0
12.RD 163971 $6,215 Yes 0
99.RD B22-202231g002 $1,342 Yes 1
93.RD R01ag070353 $156 Yes 0
20.RD Hr 15-50 (001) $-25 Yes 0
10.RD 58-3020-6-016 $-943 Yes 0
12.RD Hhm402-10-D-0009 $-2,618 Yes 0
99.RD B15-2015140g006 $-30,681 Yes 1

Contacts

Name Title Type
HKQHNFKNKL15 Carla Bright Auditee
8163265341 Alissa Klein Auditor
No contacts on file

Notes to SEFA

Title: Classified Contracts 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.Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federally sponsored project. The salary of a principal investigator of a sponsored research project and the material consumed by the project are examples of direct costs.Indirect costs are costs of services and resources that benefit both sponsored and nonsponsored projects and activities. MRIGlobal uses indirect rates to allocate indirect costs to individual direct projects. The indirect rates are calculated by dividing indirect costs by the relevant direct cost bases. The resulting rates are then applied, as applicable, to both sponsored and nonsponsored direct costs to allocate indirect costs to each end cost objective. Indirect rates are submitted to the Department of Defense for audit and approval. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended September 30, 2022, MRIGlobal had $5,881,838 of expenditures related to classified contracts with undisclosed federal agencies. These classified contracts represent 8 percent of the total schedule of expenditures of federal awards and may only be audited by the sponsoring agency and were not included as part of the audit performed in accordance with the audit 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).
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.Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federally sponsored project. The salary of a principal investigator of a sponsored research project and the material consumed by the project are examples of direct costs.Indirect costs are costs of services and resources that benefit both sponsored and nonsponsored projects and activities. MRIGlobal uses indirect rates to allocate indirect costs to individual direct projects. The indirect rates are calculated by dividing indirect costs by the relevant direct cost bases. The resulting rates are then applied, as applicable, to both sponsored and nonsponsored direct costs to allocate indirect costs to each end cost objective. Indirect rates are submitted to the Department of Defense for audit and approval. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of MRIGlobal under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of MRIGlobal, it is not intended to and does not present the financial position, changes in equity or cash flows of MRIGlobal.For purposes of this Schedule, federal awards include all grants and contracts entered into directly between MRIGlobal and agencies and departments of the federal government, as well as federal funds passed through to MRIGlobal by other recipients. As required by Uniform Guidance, the Schedule does not include amounts received by Alliance to operate government-owned, contractor-operated facilities.

Finding Details

Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.
Finding 2022-001
Research and Development ClusterClassified Government Agencies - 99.DDCriteria or Specific Requirement ? Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to the research and development cluster.Condition ? MRIGlobal Group has classified contracts which only specified parties have clearance to access the contracts and review work performed under the contracts.Questioned Costs ? Not applicableContext ? Classified contract expenditures total $5,881,838, which represents approximately 8 percent of the total schedule of expenditures of federal awards.Effect ? Due to the security requirements related to the classified contracts, we were not permitted to obtain sufficient appropriate audit evidence supporting the compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Cause ? The federal funding agency has categorized the Statement of Work for certain contracts as classified; therefore, we were unable to obtain and review related contracts in order to test compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Research and Development Cluster as it relates to these classified contracts.Identification as a Repeat Finding ? Not applicable.Recommendation ? If possible, MRIGlobal should work with the funding agencies and their cognizant agency to resolve the access matter.View of Responsible Official and Planned Corrective Actions ? Due to the classified nature ofthese contracts, no corrective action can take place because of the restrictions enforced by thesponsor's security requirements. While examination of financial mechanics related to these contractscould be performed, there is no ability, due to the classified nature of the work, for the auditors toexamine the terms of the contract, specification of deliverables, required reports and equipment,explicitly unallowable costs or other special contract limits.In the Report on Compliance for the Major Federal Program and Report on Internal Control OverCompliance, the Independent Auditor's Report notes that MRIGlobal complied, in all materialrespects, with the types of compliance requirements described in the OMB Compliance Supplementthat could have a direct and material effect on its major federal program for the year endedSeptember 30, 2022, for the non-classified contracts that were subject to audit. MRIGlobal appliesthe same level of internal controls and discipline over compliance for its classified contracts as it doesfor all other contracts and is confident that the compliance noted in the audit of the non-classifiedcontracts extends to the classified contracts. It should also be noted that the classified contracts aresubject to audit by the sponsor.