FAC Explorer

Audit 322245

FY End
2023-12-31
Total Expended
$1.50M
Findings
8
Programs
14
Organization: The Atlanta Botanical Garden, Inc. (GA)
Year: 2023 Accepted: 2024-09-30
Auditor: Smith & Howard PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499386 2023-001 Material Weakness Yes B
499387 2023-002 Significant Deficiency Yes AB
499388 2023-001 Material Weakness Yes B
499389 2023-002 Significant Deficiency Yes AB
1075828 2023-001 Material Weakness Yes B
1075829 2023-002 Significant Deficiency Yes AB
1075830 2023-001 Material Weakness Yes B
1075831 2023-002 Significant Deficiency Yes AB

Programs

ALN Program Spent Major Findings
47.074 Biological Sciences $525,558 Yes 2
15.657 Endangered Species Recovery Implementation $393,739 Yes 2
45.312 National Leadership Grants $138,954 - 0
66.130 Geographic Programs - Gulf Coast Ecosystem Restoration Council Comprehensive Plan Component $118,457 - 0
10.699 Partnership Agreements $79,424 - 0
45.301 Museums for America $72,024 - 0
15.630 Coastal $51,916 - 0
15.670 Adaptive Science $37,938 - 0
15.615 Cooperative Endangered Species Conservation Fund $32,057 - 0
15.660 Candidate Species Conservation $20,885 - 0
15.664 Fish and Wildlife Coordination and Assistance $12,359 - 0
10.001 Agricultural Research Basic and Applied Research $8,715 - 0
15.631 Partners for Fish and Wildlife $7,078 - 0
47.049 Mathematical and Physical Sciences $2,000 - 0

Contacts

Name Title Type
CJS8AB4SCLJ7 Noel Barnes Auditee
4045911556 Daniel Sage Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: ACCOUNTING PRINCIPLES - Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (“SEFA”) summarizes the expenditures of The Atlanta Botanical Garden, Inc. (the “Garden”) under programs of the federal government for the year ended December 31, 2023 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the SEFA presents only a selected portion of the activities of the Garden, it is not intended to, and does not, present either the financial position, changes in net position, or cash flows of the Garden.
Title: NOTE 2 – ACCOUNTING PRINCIPLES Accounting Policies: ACCOUNTING PRINCIPLES - Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: ACCOUNTING PRINCIPLES - Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Garden has elected to use the 10-percent de minimis indirect cost rate under Title 2 U.S. CFR Part 200, Subpart E, Cost Principles.
Title: NOTE 4 – FEDERAL ASSISTANCE LISTING NUMBERS Accounting Policies: ACCOUNTING PRINCIPLES - Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Federal assistance listing numbers (“ALN”) that are available for each federal award program are indicated on the schedule of expenditures of federal awards.
Title: NOTE 5 – CONTINGENCIES Accounting Policies: ACCOUNTING PRINCIPLES - Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Certain awards are subject to financial and compliance audits by the grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although the Garden expects such amounts, if any, to be immaterial.

Finding Details

Finding 2023-001
2023-001 – Allowable Costs/Cost Principles (Allocation of Payroll) Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance Criteria: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the nonfederal entity and(iii) Reasonably reflect the total activity for which the employee is compensated by the nonfederal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim charges made to a federal awards based on budget estimates. Condition: The Garden is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: Unknown. Context: This condition occurred in all payroll transactions selected for testing. Cause: The Garden has a tracking system in place to monitor the wages by employee charged to federal grants to avoid over-allocation of individual employee wages per the grant budget; however, this tracking system does not contain a process for identifying and allocating wages based on submitted time records. Effect: Inaccurate payroll costs may be charged to federal programs if the Garden does not have procedures in place to monitor and record employee time devoted to federal programs. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee works on more than one federal award. Management’s Response Refer to the Correction Action Plan.
Finding 2023-002
2023-002 – Approval of Expenditures Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award.  Condition: During our review of charges to federal programs, many charges were incurred on employees’ credit cards. While most credit statements and related receipts and invoices are reviewed by either the Vice President of Conservation and Research or the Director of Applied Conservation, we noted instances of no employee reviewing the Vice President of Conservation and Research, the Director of Applied Conservation, or certain department heads’ credit card charges. Questioned Costs: None noted. Context: Endangered Species Conservation Recovery Implementation Funds: We noted nine instances from the sample of fifty-three credit charges that did not have documentation of proper approval. Research and Mentoring for Postbaccalaureates in Biological Sciences: We noted one instance from the sample of twenty-two credit charges that did not have documentation of proper approval. Cause: There was no evidence of the Garden’s formal process of ensuring all expenditures are appropriated documented and approved. Effect: For transactions related to federal grants, without the appropriate supporting documentation, charges may be disallowed. Recommendation: We recommend that management establish controls and implement policies to ensure that support is obtained and maintained for all expense transactions. Management’s Response: Refer to the Correction Action Plan.
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles (Allocation of Payroll) Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance Criteria: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the nonfederal entity and(iii) Reasonably reflect the total activity for which the employee is compensated by the nonfederal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim charges made to a federal awards based on budget estimates. Condition: The Garden is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: Unknown. Context: This condition occurred in all payroll transactions selected for testing. Cause: The Garden has a tracking system in place to monitor the wages by employee charged to federal grants to avoid over-allocation of individual employee wages per the grant budget; however, this tracking system does not contain a process for identifying and allocating wages based on submitted time records. Effect: Inaccurate payroll costs may be charged to federal programs if the Garden does not have procedures in place to monitor and record employee time devoted to federal programs. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee works on more than one federal award. Management’s Response Refer to the Correction Action Plan.
Finding 2023-002
2023-002 – Approval of Expenditures Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award.  Condition: During our review of charges to federal programs, many charges were incurred on employees’ credit cards. While most credit statements and related receipts and invoices are reviewed by either the Vice President of Conservation and Research or the Director of Applied Conservation, we noted instances of no employee reviewing the Vice President of Conservation and Research, the Director of Applied Conservation, or certain department heads’ credit card charges. Questioned Costs: None noted. Context: Endangered Species Conservation Recovery Implementation Funds: We noted nine instances from the sample of fifty-three credit charges that did not have documentation of proper approval. Research and Mentoring for Postbaccalaureates in Biological Sciences: We noted one instance from the sample of twenty-two credit charges that did not have documentation of proper approval. Cause: There was no evidence of the Garden’s formal process of ensuring all expenditures are appropriated documented and approved. Effect: For transactions related to federal grants, without the appropriate supporting documentation, charges may be disallowed. Recommendation: We recommend that management establish controls and implement policies to ensure that support is obtained and maintained for all expense transactions. Management’s Response: Refer to the Correction Action Plan.
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles (Allocation of Payroll) Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance Criteria: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the nonfederal entity and(iii) Reasonably reflect the total activity for which the employee is compensated by the nonfederal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim charges made to a federal awards based on budget estimates. Condition: The Garden is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: Unknown. Context: This condition occurred in all payroll transactions selected for testing. Cause: The Garden has a tracking system in place to monitor the wages by employee charged to federal grants to avoid over-allocation of individual employee wages per the grant budget; however, this tracking system does not contain a process for identifying and allocating wages based on submitted time records. Effect: Inaccurate payroll costs may be charged to federal programs if the Garden does not have procedures in place to monitor and record employee time devoted to federal programs. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee works on more than one federal award. Management’s Response Refer to the Correction Action Plan.
Finding 2023-002
2023-002 – Approval of Expenditures Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award.  Condition: During our review of charges to federal programs, many charges were incurred on employees’ credit cards. While most credit statements and related receipts and invoices are reviewed by either the Vice President of Conservation and Research or the Director of Applied Conservation, we noted instances of no employee reviewing the Vice President of Conservation and Research, the Director of Applied Conservation, or certain department heads’ credit card charges. Questioned Costs: None noted. Context: Endangered Species Conservation Recovery Implementation Funds: We noted nine instances from the sample of fifty-three credit charges that did not have documentation of proper approval. Research and Mentoring for Postbaccalaureates in Biological Sciences: We noted one instance from the sample of twenty-two credit charges that did not have documentation of proper approval. Cause: There was no evidence of the Garden’s formal process of ensuring all expenditures are appropriated documented and approved. Effect: For transactions related to federal grants, without the appropriate supporting documentation, charges may be disallowed. Recommendation: We recommend that management establish controls and implement policies to ensure that support is obtained and maintained for all expense transactions. Management’s Response: Refer to the Correction Action Plan.
Finding 2023-001
2023-001 – Allowable Costs/Cost Principles (Allocation of Payroll) Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and material weakness in internal control over compliance Criteria: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the nonfederal entity and(iii) Reasonably reflect the total activity for which the employee is compensated by the nonfederal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The nonfederal entity’s system of internal controls includes processes to review after-the-fact interim charges made to a federal awards based on budget estimates. Condition: The Garden is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: Unknown. Context: This condition occurred in all payroll transactions selected for testing. Cause: The Garden has a tracking system in place to monitor the wages by employee charged to federal grants to avoid over-allocation of individual employee wages per the grant budget; however, this tracking system does not contain a process for identifying and allocating wages based on submitted time records. Effect: Inaccurate payroll costs may be charged to federal programs if the Garden does not have procedures in place to monitor and record employee time devoted to federal programs. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants are supported by a system of internal controls which provides reasonable assurance that the charges are accurate allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee works on more than one federal award. Management’s Response Refer to the Correction Action Plan.
Finding 2023-002
2023-002 – Approval of Expenditures Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service Federal program title: Endangered Species Conservation Recovery Implementation Funds Assistance Listing Number: 15.657 Award Period: 09/30/2020 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance and Federal Agency: National Science Foundation Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074 Award Period: 04/01/2022 – 09/30/2026 Type of Finding: Compliance and significant deficiency in internal control over compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award.  Condition: During our review of charges to federal programs, many charges were incurred on employees’ credit cards. While most credit statements and related receipts and invoices are reviewed by either the Vice President of Conservation and Research or the Director of Applied Conservation, we noted instances of no employee reviewing the Vice President of Conservation and Research, the Director of Applied Conservation, or certain department heads’ credit card charges. Questioned Costs: None noted. Context: Endangered Species Conservation Recovery Implementation Funds: We noted nine instances from the sample of fifty-three credit charges that did not have documentation of proper approval. Research and Mentoring for Postbaccalaureates in Biological Sciences: We noted one instance from the sample of twenty-two credit charges that did not have documentation of proper approval. Cause: There was no evidence of the Garden’s formal process of ensuring all expenditures are appropriated documented and approved. Effect: For transactions related to federal grants, without the appropriate supporting documentation, charges may be disallowed. Recommendation: We recommend that management establish controls and implement policies to ensure that support is obtained and maintained for all expense transactions. Management’s Response: Refer to the Correction Action Plan.