FAC Explorer

Audit 320458

FY End
2023-12-31
Total Expended
$929,540
Findings
4
Programs
1
Organization: Health and Environment Sciences Institute (DC)
Year: 2023 Accepted: 2024-09-23
Auditor: Johnson Lambert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497895 2023-001 Material Weakness - M
497896 2023-002 Material Weakness - M
1074337 2023-001 Material Weakness - M
1074338 2023-002 Material Weakness - M

Programs

ALN Program Spent Major Findings
93.103 Food and Drug Administration_research $153,660 Yes 2

Contacts

Name Title Type
PS4UVEN825F3 Beth-Ellen Berry Auditee
2026590502 Paul Preziotti Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the expenditures of the Health and Environmental Sciences Institute (HESI). The Schedule is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between HESI and agencies and departments of the federal government and all subawards made to HESI by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. De Minimis Rate Used: Y Rate Explanation: HESI has elected to use the 10% de minimis indirect cost rate, which is allowed in accordance with the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the expenditures of the Health and Environmental Sciences Institute (HESI). The Schedule is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between HESI and agencies and departments of the federal government and all subawards made to HESI by nonfederal organizations pursuant to federal grants, contracts, and similar agreements.
Title: Note B - Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the expenditures of the Health and Environmental Sciences Institute (HESI). The Schedule is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between HESI and agencies and departments of the federal government and all subawards made to HESI by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. De Minimis Rate Used: Y Rate Explanation: HESI has elected to use the 10% de minimis indirect cost rate, which is allowed in accordance with the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. CFR Part 200, Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. HESI has elected to use the 10% de minimis indirect cost rate, which is allowed in accordance with the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001: Material Weakness over Subrecipient Monitoring Information on the Federal Program: Food and Drug Administration Research, CFDA 93.103 Criteria: The Uniform Guidance requires organizations to establish internal controls to detect potential noncompliance. Condition: Management had existing controls related to subrecipient monitoring. However, these controls were not sufficiently detailed relative to the collection of audited financial statements and eligibility to receive funding. During 2023, for one subrecipient, HESI did not retain evidence of the review performed of the subrecipient’s eligibility to receive funding and did not retain evidence of the monitoring of the subrecipient’s audited financial statements. Cause: Due to a lack of policies and procedures regarding retention of documentation for subrecipient monitoring. Effect: Failed to comply with compliance supplement requirements related to subrecipient monitoring. Questioned Costs: There were no material questioned costs identified. Context: For the subrecipient chosen for testing in 2023, no evidence of monitoring the subrecipient’s eligibility to receive funding and audited financial statements was retained. Repeat Finding: No. Recommendation: We recommend that management establish procedures to ensure subrecipient monitoring requirements have appropriate supporting documentation retained. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.
Finding 2023-002
Finding 2023-002: Material Weakness over Subrecipient Reporting Information on the Federal Program: Food and Drug Administration Research, CFDA 93.103 Criteria: Federal Funding Accountability and Transparency Act (FFATA) reports are required to be filed for subrecipients receiving direct awards in excess of $30,000 by the end of the month following the month the award is given. Condition: HESI did not timely file the required FFATA report for a subrecipient receiving direct federal awards in excess of $30,000. Cause: Due to a lack of controls surrounding the monitoring of FFATA reporting for subrecipients. Effect: Failed to comply with compliance supplement requirements related to FFATA filing. Questioned Costs: There were no material questioned costs identified. Context: For 2023, the FFATA report not filed timely represents 100% of the total population of those reports. Repeat Finding: No. Recommendation: We recommend management establish a control to identify when FFATA reporting is needed and to ensure the respective reports are filed on a timely basis. This can be done as a part of their existing subrecipient monitoring checklist. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.
Finding 2023-001
Finding 2023-001: Material Weakness over Subrecipient Monitoring Information on the Federal Program: Food and Drug Administration Research, CFDA 93.103 Criteria: The Uniform Guidance requires organizations to establish internal controls to detect potential noncompliance. Condition: Management had existing controls related to subrecipient monitoring. However, these controls were not sufficiently detailed relative to the collection of audited financial statements and eligibility to receive funding. During 2023, for one subrecipient, HESI did not retain evidence of the review performed of the subrecipient’s eligibility to receive funding and did not retain evidence of the monitoring of the subrecipient’s audited financial statements. Cause: Due to a lack of policies and procedures regarding retention of documentation for subrecipient monitoring. Effect: Failed to comply with compliance supplement requirements related to subrecipient monitoring. Questioned Costs: There were no material questioned costs identified. Context: For the subrecipient chosen for testing in 2023, no evidence of monitoring the subrecipient’s eligibility to receive funding and audited financial statements was retained. Repeat Finding: No. Recommendation: We recommend that management establish procedures to ensure subrecipient monitoring requirements have appropriate supporting documentation retained. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.
Finding 2023-002
Finding 2023-002: Material Weakness over Subrecipient Reporting Information on the Federal Program: Food and Drug Administration Research, CFDA 93.103 Criteria: Federal Funding Accountability and Transparency Act (FFATA) reports are required to be filed for subrecipients receiving direct awards in excess of $30,000 by the end of the month following the month the award is given. Condition: HESI did not timely file the required FFATA report for a subrecipient receiving direct federal awards in excess of $30,000. Cause: Due to a lack of controls surrounding the monitoring of FFATA reporting for subrecipients. Effect: Failed to comply with compliance supplement requirements related to FFATA filing. Questioned Costs: There were no material questioned costs identified. Context: For 2023, the FFATA report not filed timely represents 100% of the total population of those reports. Repeat Finding: No. Recommendation: We recommend management establish a control to identify when FFATA reporting is needed and to ensure the respective reports are filed on a timely basis. This can be done as a part of their existing subrecipient monitoring checklist. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.