FAC Explorer

Audit 320631

FY End
2023-12-29
Total Expended
$5.02M
Findings
4
Programs
1
Organization: Global Foundation for Ocean Exploration (CT)
Year: 2023 Accepted: 2024-09-24
Auditor: Wollack Lewitz CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497977 2023-001 Material Weakness - C
497978 2023-002 Material Weakness - L
1074419 2023-001 Material Weakness - C
1074420 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
11.011 Ocean Exploration $5.02M Yes 2

Contacts

Name Title Type
YNWFA3JD4E31 Laurie Bradt Auditee
2032465531 Joseph Wollack Auditor
No contacts on file

Notes to SEFA

Title: Note A – Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Global Foundation for Ocean Exploration, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Global Foundation for Ocean Exploration, Inc. under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of The Global Foundation for Ocean Exploration, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Global Foundation for Ocean Exploration, Inc.
Title: Note B – Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Global Foundation for Ocean Exploration, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under 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 the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note C – Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Global Foundation for Ocean Exploration, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Global Foundation for Ocean Exploration, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
A grant drawdown of $75,521 was taken on December 8, 2023, and duplicated on December 13, 2023. The excess draw was applied against other reimbursable expenses later in the month. Criteria: The President approves all grant drawdowns before they are executed. Cause: No memo is placed on the draw-down authorization to alert staff that it has already been executed. Effect: Excess funds were drawn from the federal grant. Recommendation: Controls should be in place to prevent duplicate drawdowns from grants. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the findings and will implement controls to prevent its recurrence.
Finding 2023-002
Condition: Credit card statements were not recorded in the general ledger. Criteria: A list of credit card charges is generated by the Director of Administration each month and given to the President for review and approval. The amount on that list is then recorded in the general ledger and then paid by the Director of Administration. Cause: The Director of Administration followed the required procedures except for recording the expenses. Effect: Expenses and liabilities were understated by $16,544. Recommendation: The Director of Administration should verify that the outstanding balance on the credit card statement agrees with the balance in the general ledger each month. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the findings and will add credit card reconciliation to the monthly procedures to be performed
Finding 2023-001
A grant drawdown of $75,521 was taken on December 8, 2023, and duplicated on December 13, 2023. The excess draw was applied against other reimbursable expenses later in the month. Criteria: The President approves all grant drawdowns before they are executed. Cause: No memo is placed on the draw-down authorization to alert staff that it has already been executed. Effect: Excess funds were drawn from the federal grant. Recommendation: Controls should be in place to prevent duplicate drawdowns from grants. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the findings and will implement controls to prevent its recurrence.
Finding 2023-002
Condition: Credit card statements were not recorded in the general ledger. Criteria: A list of credit card charges is generated by the Director of Administration each month and given to the President for review and approval. The amount on that list is then recorded in the general ledger and then paid by the Director of Administration. Cause: The Director of Administration followed the required procedures except for recording the expenses. Effect: Expenses and liabilities were understated by $16,544. Recommendation: The Director of Administration should verify that the outstanding balance on the credit card statement agrees with the balance in the general ledger each month. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the findings and will add credit card reconciliation to the monthly procedures to be performed