FAC Explorer

Audit 321131

FY End
2023-12-31
Total Expended
$2.13M
Findings
2
Programs
18
Organization: Stroud Water Research Center, INC (PA)
Year: 2023 Accepted: 2024-09-26
Auditor: Belfint Lyons & Shuman P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498390 2023-002 Significant Deficiency - C
1074832 2023-002 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
66.466 Geographic Programs - Chesapeake Bay Program $343,501 Yes 0
10.902 Soil and Water Conservation $254,212 Yes 0
66.964 Geographic Programs - Chesapeake Bay Program Implementation, Regulatory/accountability and Monitoring Grants $230,471 Yes 0
15.945 Cooperative Research and Training Programs � Resources of the National Park System $183,360 Yes 0
84.425 Education Stabilization Fund $173,146 - 0
47.050 Geosciences $172,799 Yes 0
47.074 Biological Sciences $94,168 Yes 0
10.937 Partnerships for Climate-Smart Commodities $63,028 Yes 0
15.663 Nfwf-Usfws Conservation Partnership $35,443 Yes 0
10.170 Specialty Crop Block Grant Program - Farm Bill $29,720 Yes 0
10.310 Agriculture and Food Research Initiative (afri) $27,450 Yes 0
47.076 Stem Education (formerly Education and Human Resources) $26,482 Yes 0
21.019 Coronavirus Relief Fund $24,178 - 0
15.954 National Park Service Conservation, Protection, Outreach, and Education $18,180 Yes 0
15.962 National Wild and Scenic Rivers System $15,547 Yes 0
11.417 Sea Grant Support $7,184 Yes 0
15.670 Adaptive Science $2,897 Yes 0
11.457 Chesapeake Bay Studies $494 Yes 0

Contacts

Name Title Type
J7MLUBQMXRD1 John Pepe Auditee
6102682153 Jonathan D. Moll Auditor
No contacts on file

Notes to SEFA

Title: NOTE D: NATIONAL FISH AND WILDLIFE FOUNDATION (NFWF) - CHESAPEAKE BAY PROGRAM AND SOIL AND WATER CONSERVATION Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal award activity of Stroud WaterResearch Center, 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 Stroud Water Research Center, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Stroud Water Research Center, Inc. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Stroud Water Research Center, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended December 31, 2023, funds totaling $597,713 were received from the National Fish and Wildlife Foundation. While the grant agreements indicate that the source of the funds includes federal (Assistance Listing numbers #66.466/10.902 and 10.902/10.912/10.924/10.678), the National Fish and Wildlife Foundation has not provided the Corporation with the amount reimbursed by funding source. Because the amount by CFDA number cannot be separately identified, the full amount is included in the accompanying schedule of expenditures of federal awards under U.S. Environmental Protection Agency and U.S. Department of Agriculture. During the year ended December 31, 2023, funds totaling $36,262 were received from the Pennsylvania Department of Conservation and Natural Resources. While the grant agreements indicate that the source of the funds includes federal (Assistance Listing numbers #27.027/66.964), the Pennsylvania Department of Conservation and Natural Resources has not provided the Corporation with the amount reimbursed by funding source. Because the amount by Assistance Listing Number cannot be separately identified, the full amount is included in the accompanying schedule of expenditures of federal awards under U.S. Environmental Protection Agency and U.S. Department of Agriculture.

Finding Details

Finding 2023-002
Condition: In May 2023, the Corporation received a $1,425,000 advance of federal funds. The grant agreement and federal regulations require the funds to be held in a separate interest-bearing account until expended. In December 2023, the Corporation made an endowment draw receipt of which was delayed by the investment manager. As a result, the total unrestricted cash was less than the unspent grant funds. This was cured on January 2, 2024, when the endowment draw of approximately $300,000 was received. Criteria: Uniform Guidance, 2 CFR § 200.305(b) - Cash Management, requires a recipient that receives an advance of federal funds to maintain the funds in a separate interest-bearing account. Furthermore, recipients must limit the use of the advanced federal funds to only those purposes outlined in the award agreement, and the funds must not be used for general operations or other non-compliant purposes. Cause: The Corporation’s endowment draw was delayed by the investment manager resulting in a period of time where grant funds were used for non-grant expenditures. Effect: The delay in receipt of the requested endowment draw resulted in the Corporation’s total unrestricted cash balance falling below unspent grant funds for a period of time from mid-December 2023 through January 2, 2024. This indicates that grants funds were temporarily used for general operations. Questioned Costs: As of December 31, 2023, $119,984 was utilized to fund general operations. Those grant funds were reimbursed on January 2, 2024. Recommendation: We recommend the Corporation rely upon other funding sources for operations if this situation occurs in the future.
Finding 2023-002
Condition: In May 2023, the Corporation received a $1,425,000 advance of federal funds. The grant agreement and federal regulations require the funds to be held in a separate interest-bearing account until expended. In December 2023, the Corporation made an endowment draw receipt of which was delayed by the investment manager. As a result, the total unrestricted cash was less than the unspent grant funds. This was cured on January 2, 2024, when the endowment draw of approximately $300,000 was received. Criteria: Uniform Guidance, 2 CFR § 200.305(b) - Cash Management, requires a recipient that receives an advance of federal funds to maintain the funds in a separate interest-bearing account. Furthermore, recipients must limit the use of the advanced federal funds to only those purposes outlined in the award agreement, and the funds must not be used for general operations or other non-compliant purposes. Cause: The Corporation’s endowment draw was delayed by the investment manager resulting in a period of time where grant funds were used for non-grant expenditures. Effect: The delay in receipt of the requested endowment draw resulted in the Corporation’s total unrestricted cash balance falling below unspent grant funds for a period of time from mid-December 2023 through January 2, 2024. This indicates that grants funds were temporarily used for general operations. Questioned Costs: As of December 31, 2023, $119,984 was utilized to fund general operations. Those grant funds were reimbursed on January 2, 2024. Recommendation: We recommend the Corporation rely upon other funding sources for operations if this situation occurs in the future.