Federal Program
AL No. 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity
State of Delaware
Federal Agency
U.S. Department of Treasury
Contract Number and Award Year
Award Number SLFRP0139
Award year March 3, 2021 through December 31, 2026
Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
Nemours failed to timely report their quarterly expenditures to the State of Delaware for the fourth quarter
of 2023, as agreed to in their contractual agreement.
Possible Cause and Effect
There was an absence of internal controls in place to ensure that the grant was being appropriately
monitored, including the contractual reporting requirements.
Questioned Costs
None
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
Management should enhance its process to ensure an appropriate individual is assigned responsibility for
monitoring all contractual aspects of the grant, including the reporting requirements.
View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Program
AL No. 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity
State of Delaware
Federal Agency
U.S. Department of Treasury
Contract Number and Award Year
Award Number SLFRP0139
Award year March 3, 2021 through December 31, 2026
Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
Nemours failed to timely report their quarterly expenditures to the State of Delaware for the fourth quarter
of 2023, as agreed to in their contractual agreement.
Possible Cause and Effect
There was an absence of internal controls in place to ensure that the grant was being appropriately
monitored, including the contractual reporting requirements.
Questioned Costs
None
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
Management should enhance its process to ensure an appropriate individual is assigned responsibility for
monitoring all contractual aspects of the grant, including the reporting requirements.
View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Program
Research and Development Cluster Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Condition and Context
The Harmony payroll system is configured to calculate and apply salary cap limits to payroll related
expenditures allocated to federally funded Research & Development programs in accordance with National
Institute of Health (NIH) guidelines. This limit is applied based on employees’ hourly salary rates
(calculated as gross annual pay divided by 2,080 hours for salaried employees). In testing a sample of 60
payroll expenditures, KPMG identified two employees whose calculated payroll expenditure exceeded the
amount that should have been recorded due to incorrect inputs utilized in the calculation of the salary cap
limits within the Harmony payroll system. The employees affected were non-full time (non-FTE) employees
who, while salaried, do not work 2,080 hours per year. When calculating the salary cap limits for these
employees, the non-FTE status was not considered, resulting in a lower hourly salary rate being utilized in
applying the salary cap limit. Possible Cause and Effect
The Harmony payroll system was not configured to appropriately apply salary cap thresholds to non-FTE
status employees.
Questioned Costs
$15,834
Statistically Valid Sample
The sample was not intended to be, and was not, a statistically valid sample.
Repeat of Prior Finding
No
Recommendations
The Foundation should update the configuration of the Harmony payroll system to properly consider the
FTE status of employees when calculating salary cap limits for employees expending time and effort on
federally funded programs. View of Responsible Officials
Management agrees with the noted finding.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.
Federal Agency
U.S. Department of Health and Human Services Criteria
2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain
internal control over the federal awards that provides reasonable assurance that the non-federal entity is
managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions
of the federal awards.
Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal
awards (SEFA) for the period covered by the auditee’s financial statements which must include the total
federal awards expended as determined in accordance with 2 CFR section 200.502.
Condition and Context
In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments
recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These
manual adjustments, were not material to the 2023 combined financial statements and related to correcting
allocations of time and effort charged to federal grants. Through our allowability testing of payroll
expenditures within the Research & Development Cluster, we determined the impact of these time and
effort payroll corrections was not completely captured during the SEFA preparation process. As a result,
adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect
Because effort reporting changes were not timely identified and processed prior to the closing of the books
and records for the fiscal year, there were payroll related changes impacting federal grants that were
processed in the general ledger during 2024. As a result, management attempted to identify all of these
changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of
the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA
preparation process.
Questioned Costs
None
Statistically Valid Sample
Not applicable
Repeat of Prior Finding
No
Recommendations
Management should revise its process to ensure that effort reporting changes are timely identified and
processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the
process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials
Management agrees with the noted finding. Management notes that all payroll adjustments were completed
prior to reporting any final costs to the funding agencies.