FAC Explorer

Audit 334550

FY End
2023-12-31
Total Expended
$2.20M
Findings
4
Programs
3
Organization: Digital Harbor Foundation INC (MD)
Year: 2023 Accepted: 2024-12-23
Auditor: Lswg P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516584 2023-001 Material Weakness - M
516585 2023-002 Material Weakness - I
1093026 2023-001 Material Weakness - M
1093027 2023-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.56M Yes 0
47.076 Stem Education (formerly Education and Human Resources) $606,680 Yes 2
94.006 Americorps State and National 94.006 $38,547 - 0

Contacts

Name Title Type
FTMQYPJFCRB3 Robert Charles Auditee
8034771092 Cynthia Eva Webb Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Note A - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Digital Harbor Foundation, 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). Compliance testing of all general requirements, as described in the OMB’s Compliance Supplement, was performed. Compliance testing of specific requirements was performed for the major federal award programs listed below. Because the Schedule presents only a selected portion of the operations of Digital Harbor Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Digital Harbor Foundation, Inc. MAJOR PROGRAMS Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing # 21.027) is a major program tested for the year ended December 31, 2023. This program was created as part of the American Rescue Plan Act of 2021 and provided funding to local governments to respond to the COVID-19 public health emergency or its negative economic benefit. The Department of the Treasury administers the program. STEM Education (Assistance Listing # 47.076) is a major program tested for the year ended December 31, 2023. The objective of this program is to provide leadership and ensure the vitality of the Nation’s science, technology, engineering and mathematics (STEM) education enterprise. The National Science Foundation administers the program. Note B - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting using accounting principles generally accepted in the United States of America. 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. Note C – Indirect Cost Rate Digital Harbor Foundation, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Auditee used the de minimis cost rate. Note A - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Digital Harbor Foundation, 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). Compliance testing of all general requirements, as described in the OMB’s Compliance Supplement, was performed. Compliance testing of specific requirements was performed for the major federal award programs listed below. Because the Schedule presents only a selected portion of the operations of Digital Harbor Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Digital Harbor Foundation, Inc. MAJOR PROGRAMS Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing # 21.027) is a major program tested for the year ended December 31, 2023. This program was created as part of the American Rescue Plan Act of 2021 and provided funding to local governments to respond to the COVID-19 public health emergency or its negative economic benefit. The Department of the Treasury administers the program. STEM Education (Assistance Listing # 47.076) is a major program tested for the year ended December 31, 2023. The objective of this program is to provide leadership and ensure the vitality of the Nation’s science, technology, engineering and mathematics (STEM) education enterprise. The National Science Foundation administers the program.
Title: Note B - Summary of Significant Accounting Policies Accounting Policies: Note A - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Digital Harbor Foundation, 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). Compliance testing of all general requirements, as described in the OMB’s Compliance Supplement, was performed. Compliance testing of specific requirements was performed for the major federal award programs listed below. Because the Schedule presents only a selected portion of the operations of Digital Harbor Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Digital Harbor Foundation, Inc. MAJOR PROGRAMS Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing # 21.027) is a major program tested for the year ended December 31, 2023. This program was created as part of the American Rescue Plan Act of 2021 and provided funding to local governments to respond to the COVID-19 public health emergency or its negative economic benefit. The Department of the Treasury administers the program. STEM Education (Assistance Listing # 47.076) is a major program tested for the year ended December 31, 2023. The objective of this program is to provide leadership and ensure the vitality of the Nation’s science, technology, engineering and mathematics (STEM) education enterprise. The National Science Foundation administers the program. Note B - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting using accounting principles generally accepted in the United States of America. 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. Note C – Indirect Cost Rate Digital Harbor Foundation, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Auditee used the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting using accounting principles generally accepted in the United States of America. 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: Note A - Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Digital Harbor Foundation, 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). Compliance testing of all general requirements, as described in the OMB’s Compliance Supplement, was performed. Compliance testing of specific requirements was performed for the major federal award programs listed below. Because the Schedule presents only a selected portion of the operations of Digital Harbor Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Digital Harbor Foundation, Inc. MAJOR PROGRAMS Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing # 21.027) is a major program tested for the year ended December 31, 2023. This program was created as part of the American Rescue Plan Act of 2021 and provided funding to local governments to respond to the COVID-19 public health emergency or its negative economic benefit. The Department of the Treasury administers the program. STEM Education (Assistance Listing # 47.076) is a major program tested for the year ended December 31, 2023. The objective of this program is to provide leadership and ensure the vitality of the Nation’s science, technology, engineering and mathematics (STEM) education enterprise. The National Science Foundation administers the program. Note B - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting using accounting principles generally accepted in the United States of America. 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. Note C – Indirect Cost Rate Digital Harbor Foundation, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Auditee used the de minimis cost rate. Digital Harbor Foundation, Inc. has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
NATIONAL SCIENCE FOUNDATION Program Information Assistance Listing # 47.076 STEM Education Grant No. (FAIN) 2005484 Grant Period - September 1, 2020 – August 31, 2023 Grant No. (FAIN) 2005942 Grant Period – August 15, 2020 – July 31, 2024 2023-001 Documentation of Subawards Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.331 requires a pass-through entity (PTE) to clearly identify to the subrecipient: (1) the award as a subaward at the time of subaward (or subsequent subaward modification) by providing the information described in 2 CFR section 200.331(a)(1); (2) all requirements imposed by the PTE on the subrecipient so that the federal award is used in accordance with federal statutes, regulations, and the terms and conditions of the award (2 CFR section 200.331(a)(2)); and (3) any additional requirements that the PTE imposes on the subrecipient in order for the PTE to meet its own responsibility for the federal award (e.g., financial, performance, and special reports) (2 CFR section 200.331(a)(3)). Condition: A sample of three subawards were selected. Two of the three subawards did not have a subaward agreement. Also, there were no controls in place to detect or prevent these agreements from not being obtained. Cause: This is the first year that the Foundation was required to have a Single audit and as such is still in the process of developing and adopting specific policies for subawards and subrecipients. Effect: During 2023 contemporaneous documentation was not obtained from subawardees and subrecipients. Auditor’s Recommendation: We recommend that management adopt an internal control policy which requires all sub-awardees to have a subaward agreement or memorandum of understanding (MOU). Views of Responsible Officials and Planned Corrective Actions: The Foundation’s management team agrees with this finding and remains fully committed to both developing and adopting specific policies for subawards and subrecipients which will better ensure its internal practices are in alignment with the Uniform Guidance.
Finding 2023-002
NATIONAL SCIENCE FOUNDATION Program Information Assistance Listing # 47.076 STEM Education Grant No. (FAIN) 2005484 Grant Period - September 1, 2020 – August 31, 2023 Grant No. (FAIN) 2005942 Grant Period – August 15, 2020 – July 31, 2024 2023-002 Policies and Procedures Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.318 - 200.327 require written policies concerning methods of procurement for goods and services. Condition: The Foundation did not have a written procurement policy that included all of the required elements during 2023. Also, there were no controls in place to detect or prevent this policy from not being prepared. Cause: This is the first year that the Foundation was required to have a Single audit and as such is still in the process of developing and adopting specific policies and procedures to ensure its internal practices are in alignment with the Uniform Guidance. Effect: The Foundation is not in compliance with Section 200.318 - 200.327 of the Code of Federal Regulations. Auditor’s Recommendation: We recommend that the Foundation adopt a formal written procurement policy in the format and with the elements required by 2 CFR Sections 200.318 to 200.327. Views of Responsible Officials and Planned Corrective Actions: The Foundation’s management team agrees with this finding and remains fully committed to both developing and adopting specific procurement policies for federal expenditures which will better ensure its internal practices are in alignment with the Uniform Guidance.
Finding 2023-001
NATIONAL SCIENCE FOUNDATION Program Information Assistance Listing # 47.076 STEM Education Grant No. (FAIN) 2005484 Grant Period - September 1, 2020 – August 31, 2023 Grant No. (FAIN) 2005942 Grant Period – August 15, 2020 – July 31, 2024 2023-001 Documentation of Subawards Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.331 requires a pass-through entity (PTE) to clearly identify to the subrecipient: (1) the award as a subaward at the time of subaward (or subsequent subaward modification) by providing the information described in 2 CFR section 200.331(a)(1); (2) all requirements imposed by the PTE on the subrecipient so that the federal award is used in accordance with federal statutes, regulations, and the terms and conditions of the award (2 CFR section 200.331(a)(2)); and (3) any additional requirements that the PTE imposes on the subrecipient in order for the PTE to meet its own responsibility for the federal award (e.g., financial, performance, and special reports) (2 CFR section 200.331(a)(3)). Condition: A sample of three subawards were selected. Two of the three subawards did not have a subaward agreement. Also, there were no controls in place to detect or prevent these agreements from not being obtained. Cause: This is the first year that the Foundation was required to have a Single audit and as such is still in the process of developing and adopting specific policies for subawards and subrecipients. Effect: During 2023 contemporaneous documentation was not obtained from subawardees and subrecipients. Auditor’s Recommendation: We recommend that management adopt an internal control policy which requires all sub-awardees to have a subaward agreement or memorandum of understanding (MOU). Views of Responsible Officials and Planned Corrective Actions: The Foundation’s management team agrees with this finding and remains fully committed to both developing and adopting specific policies for subawards and subrecipients which will better ensure its internal practices are in alignment with the Uniform Guidance.
Finding 2023-002
NATIONAL SCIENCE FOUNDATION Program Information Assistance Listing # 47.076 STEM Education Grant No. (FAIN) 2005484 Grant Period - September 1, 2020 – August 31, 2023 Grant No. (FAIN) 2005942 Grant Period – August 15, 2020 – July 31, 2024 2023-002 Policies and Procedures Material Weakness Criteria: The Code of Federal Regulations (CFR) Section 200.318 - 200.327 require written policies concerning methods of procurement for goods and services. Condition: The Foundation did not have a written procurement policy that included all of the required elements during 2023. Also, there were no controls in place to detect or prevent this policy from not being prepared. Cause: This is the first year that the Foundation was required to have a Single audit and as such is still in the process of developing and adopting specific policies and procedures to ensure its internal practices are in alignment with the Uniform Guidance. Effect: The Foundation is not in compliance with Section 200.318 - 200.327 of the Code of Federal Regulations. Auditor’s Recommendation: We recommend that the Foundation adopt a formal written procurement policy in the format and with the elements required by 2 CFR Sections 200.318 to 200.327. Views of Responsible Officials and Planned Corrective Actions: The Foundation’s management team agrees with this finding and remains fully committed to both developing and adopting specific procurement policies for federal expenditures which will better ensure its internal practices are in alignment with the Uniform Guidance.