FAC Explorer

Audit 329117

FY End
2023-12-31
Total Expended
$830,590
Findings
2
Programs
2
Organization: Delaware Academy of Medicine, Inc. (DE)
Year: 2023 Accepted: 2024-11-20
Auditor: Belfint Lyons and Shuman P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
509320 2023-002 Material Weakness Yes AB
1085762 2023-002 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $785,937 Yes 1
93.011 National Organizations for State and Local Officials $44,653 - 0

Contacts

Name Title Type
MFXFFJQ5A2A5 Kate Smith Auditee
3027335571 Christina Kay Bell Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF ACCOUNTING Accounting Policies: The Academy uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. De Minimis Rate Used: Both Rate Explanation: The Academy used an indirect cost rate of 10%. The rate was reduced by contract to 7.5% for the Department of Treasury grant. The Schedule of Expenditures of Federal Awards is prepared on the same basis of accounting as the Delaware Academy of Medicine, Inc. and Supporting Organizations’ (Academy) consolidated financial statements. The Academy uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program.
Title: PROGRAM COSTS Accounting Policies: The Academy uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. De Minimis Rate Used: Both Rate Explanation: The Academy used an indirect cost rate of 10%. The rate was reduced by contract to 7.5% for the Department of Treasury grant. The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the Academy’s portion, may be more than shown.
Title: FEDERAL INDIRECT RATE Accounting Policies: The Academy uses the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. De Minimis Rate Used: Both Rate Explanation: The Academy used an indirect cost rate of 10%. The rate was reduced by contract to 7.5% for the Department of Treasury grant. The Academy used an indirect cost rate of 10%. This rate was reduced by contract to 7.5% for the Department of the Treasury grant.

Finding Details

Finding 2023-002
Condition: For the year ended December 31, 2023, the Academy’s allowable indirect costs were limited to $33,237 based on total modified direct costs. Based on results of audit procedures performed, $97,368 of indirect costs were charged to the grant during the year ended December 31, 2023. Criteria: The Academy embedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. As a result, the Academy’s indirect costs were limited to 7.5% of total modified direct costs. As defined by 2 CFR Section 200, total modified direct costs equal total direct costs less all but $25,000 of subawards (regardless of the period of performance of the subaward). Cause: The Academy did not properly calculate allowable indirect costs under the grant award during the year ended December 31, 2023. Effect: Amounts charged to the contract exceeded allowable costs by $64,130. Recommendation: Management should develop procedures to calculate allowable indirect costs under its awards.
Finding 2023-002
Condition: For the year ended December 31, 2023, the Academy’s allowable indirect costs were limited to $33,237 based on total modified direct costs. Based on results of audit procedures performed, $97,368 of indirect costs were charged to the grant during the year ended December 31, 2023. Criteria: The Academy embedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. As a result, the Academy’s indirect costs were limited to 7.5% of total modified direct costs. As defined by 2 CFR Section 200, total modified direct costs equal total direct costs less all but $25,000 of subawards (regardless of the period of performance of the subaward). Cause: The Academy did not properly calculate allowable indirect costs under the grant award during the year ended December 31, 2023. Effect: Amounts charged to the contract exceeded allowable costs by $64,130. Recommendation: Management should develop procedures to calculate allowable indirect costs under its awards.