FAC Explorer

Audit 318710

FY End
2024-06-30
Total Expended
$1.37M
Findings
2
Programs
2
Organization: Central Michigan University Research Corporation (MI)
Year: 2024 Accepted: 2024-09-06
Auditor: Yeo & Yeo PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
486020 2024-003 Material Weakness - M
1062462 2024-003 Material Weakness - M

Programs

ALN Program Spent Major Findings
59.059 Congressional Earmarks Initiative $1.03M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $344,254 - 0

Contacts

Name Title Type
WQ5JW966KBQ8 Erin Strang Auditee
9897742424 Ali Barnes Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the OMB Circular A-122 Cost Principles for Non-Profit Organizations where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Central Michigan University Research Corporation (the Organization) under programs of the federal government for the year ended June 30, 2024. 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the OMB Circular A-122 Cost Principles for Non-Profit Organizations where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the OMB Circular A-122 Cost Principles for Non-Profit Organizations where certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 - Subrecipients Accounting Policies: Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the OMB Circular A-122 Cost Principles for Non-Profit Organizations where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Payments were provided to subrecipients as follows: See the Notes to the SEFA for chart/table

Finding Details

Finding 2024-003
Program: Assistance Listing Number 59.059 – Congressional Earmarks Initiative Awarding Agency – U.S. Small Business Association Grant Number – SBAHQ23I0008 Federal Award Year – 2024 Questioned Cost: None. Criteria: Per 2 CFR 200.332, Central Michigan University Research Corporation is required to perform risk assessment and monitoring procedures for subrecipients of federal grants. This includes procedures such as evaluating the subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward, review of financial and performance reports, and follow up of the subrecipient’s correction of previous Single Audit findings. Condition: The Organization lacked documentation that sufficient subrecipient risk assessment and monitoring procedures were performed as required by Uniform Guidance. An assumption was made that because the subrecipient was to receive funding as part of a federal mandate that the Organization’s only responsibility was to pass through the funding. Cause / Effect: Management does not have the proper policies and procedures in place to ensure that the required subrecipient procedures are being performed, causing noncompliance. Recommendation: We recommend that management reviews the required procedures for pass-through entities as listed in 2 CFR 200.332 and implements the procedures accordingly. This should include documented risk assessment and monitoring procedures for all subrecipient of federal awards. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan from management.
Finding 2024-003
Program: Assistance Listing Number 59.059 – Congressional Earmarks Initiative Awarding Agency – U.S. Small Business Association Grant Number – SBAHQ23I0008 Federal Award Year – 2024 Questioned Cost: None. Criteria: Per 2 CFR 200.332, Central Michigan University Research Corporation is required to perform risk assessment and monitoring procedures for subrecipients of federal grants. This includes procedures such as evaluating the subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward, review of financial and performance reports, and follow up of the subrecipient’s correction of previous Single Audit findings. Condition: The Organization lacked documentation that sufficient subrecipient risk assessment and monitoring procedures were performed as required by Uniform Guidance. An assumption was made that because the subrecipient was to receive funding as part of a federal mandate that the Organization’s only responsibility was to pass through the funding. Cause / Effect: Management does not have the proper policies and procedures in place to ensure that the required subrecipient procedures are being performed, causing noncompliance. Recommendation: We recommend that management reviews the required procedures for pass-through entities as listed in 2 CFR 200.332 and implements the procedures accordingly. This should include documented risk assessment and monitoring procedures for all subrecipient of federal awards. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan from management.