Audit 336310

FY End
2024-09-30
Total Expended
$1.67B
Findings
8
Programs
201
Year: 2024 Accepted: 2025-01-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
518005 2024-001 - - P
518006 2024-002 - - F
518007 2024-002 - - F
518008 2024-003 - - C
1094447 2024-001 - - P
1094448 2024-002 - - F
1094449 2024-002 - - F
1094450 2024-003 - - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $39.94M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $39.40M - 0
93.838 Lung Diseases Research $6.69M Yes 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $5.15M - 0
93.351 Research Infrastructure Programs $4.83M Yes 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $4.33M Yes 0
93.242 Covid-19 Mental Health Research Grants $2.73M Yes 0
93.286 Covid-19 Discovery and Applied Research for Technological Innovations to Improve Human Health $2.49M Yes 0
93.788 Opioid Str $1.86M - 0
93.173 Research Related to Deafness and Communication Disorders $1.84M Yes 0
93.867 Vision Research $1.77M Yes 0
93.859 Biomedical Research and Research Training $1.58M Yes 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $1.54M Yes 0
93.213 Research and Training in Complementary and Integrative Health $1.43M Yes 0
93.273 Alcohol Research Programs $1.37M Yes 0
93.233 National Center on Sleep Disorders Research $1.24M Yes 0
93.940 Hiv Prevention Activities Health Department Based $1.22M - 0
93.172 Human Genome Research $1.18M Yes 0
93.817 Covid-19 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $1.07M Yes 0
93.859 Covid-19 Biomedical Research and Research Training $1.04M Yes 0
47.076 Stem Education (formerly Education and Human Resources) $896,964 Yes 0
12.420 Military Medical Research and Development $774,604 Yes 0
93.084 Prevention of Disease, Disability, and Death by Infectious Diseases $752,076 - 0
93.113 Environmental Health $607,506 Yes 0
93.917 Hiv Care Formula Grants $603,859 - 0
12.750 Covid-19 Uniformed Services University Medical Research Projects $587,414 Yes 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $585,532 - 0
93.279 Covid-19 Drug Abuse and Addiction Research Programs $583,667 Yes 0
17.268 H-1b Job Training Grants $568,118 Yes 0
93.121 Oral Diseases and Disorders Research $547,562 Yes 0
93.307 Minority Health and Health Disparities Research $503,415 Yes 0
93.839 Covid-19 Blood Diseases and Resources Research $487,604 Yes 0
93.307 Covid-19 Minority Health and Health Disparities Research $484,752 Yes 0
93.914 Hiv Emergency Relief Project Grants $469,666 - 0
93.RD Covid-19 Biomedical Advanced Research and Development Authority $437,812 Yes 0
93.349 Packaging and Spreading Proven Pediatric Weight Management Interventions for Use by Low-Income Families $407,576 Yes 0
93.395 Cancer Treatment Research $381,714 Yes 0
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $380,530 Yes 0
93.226 Research on Healthcare Costs, Quality and Outcomes $359,495 Yes 0
93.393 Cancer Cause and Prevention Research $340,295 Yes 0
93.732 Covid-19 Mental and Behavioral Health Education and Training Grants $334,517 Yes 0
93.855 Covid-19 Allergy and Infectious Diseases Research $327,461 Yes 0
12.431 Basic Scientific Research $323,987 Yes 0
93.493 Congressional Directives $300,354 - 0
14.241 Housing Opportunities for Persons with Aids $299,093 - 0
64.054 Research and Development $291,255 Yes 0
81.135 Advanced Research Projects Agency - Energy $272,301 Yes 0
93.U01 U.s. Department of Justice Contracts $256,974 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $251,576 - 0
47.075 Social, Behavioral, and Economic Sciences $250,610 Yes 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $241,821 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $237,444 - 0
93.172 Covid-19 Human Genome Research $233,078 Yes 0
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $227,035 Yes 0
12.351 Scientific Research - Combating Weapons of Mass Destruction $225,283 Yes 0
12.800 Air Force Defense Research Sciences Program $222,073 Yes 0
93.113 Covid-19 Environmental Health $221,261 Yes 0
93.RD U.s. Department of State Contracts $217,588 Yes 0
93.RD U.s. Department of Energy Contracts $216,128 Yes 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $215,629 Yes 0
81.049 Office of Science Financial Assistance Program $214,212 Yes 0
16.842 Opioid Affected Youth Initiative $209,033 Yes 0
12.300 Basic and Applied Scientific Research $208,291 Yes 0
93.879 Covid-19 Medical Library Assistance $198,655 Yes 0
93.495 Covid-19 Community Health Workers for Public Health Response and Resilient $192,516 - 0
93.084 Covid-19 Prevention of Disease, Disability, and Death by Infectious Diseases $183,831 Yes 0
93.RD Federal Communications Commission Contracts $171,801 Yes 0
93.U02 Substance Abuse and Mental Health Services Administration Contracts $170,878 - 0
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $166,827 Yes 0
93.368 21st Century Cures Act - Precision Medicine Initiative $165,633 Yes 0
93.310 Covid-19 Trans-Nih Research Support $158,404 Yes 0
10.001 Agricultural Research Basic and Applied Research $153,514 Yes 0
47.084 Nsf Technology, Innovation, and Partnerships $152,779 Yes 0
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants and Cooperative Agreements $148,634 - 0
93.RD Covid-19 Centers for Diseases Control and Prevention Contracts $147,232 Yes 0
93.604 Assistance for Torture Victims $143,142 Yes 0
93.865 Covid-19 Child Health and Human Development Extramural Research $135,266 Yes 0
93.173 Covid-19 Research Related to Deafness and Communication Disorders $127,901 Yes 0
93.397 Cancer Centers Support Grants $116,277 Yes 0
93.276 Drug-Free Communities Support Program Grants $115,577 - 0
12.750 Uniformed Services University Medical Research Projects $111,986 Yes 0
93.184 Disabilities Prevention $107,552 - 0
93.839 Blood Diseases and Resources Research $107,253 Yes 0
19.345 International Programs to Support Democracy, Human Rights and Labor $102,051 Yes 0
93.RD Centers for Diseases Control and Prevention Contracts $101,439 Yes 0
93.941 Hiv Demonstration, Research, Public and Professional Education Projects $101,344 Yes 0
93.250 Geriatric Academic Career Awards Department of Health and Human Services $101,250 Yes 0
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $98,045 - 0
93.825 Covid-19 National Ebola Training and Education Center (netec) $97,709 Yes 0
93.273 Covid-19 Alcohol Research Programs $97,200 Yes 0
93.RD U.s. Food & Drug Administration Contracts $95,743 Yes 0
93.RD Federal Aviation Administration Contracts $92,662 Yes 0
93.226 Covid-19 Research on Healthcare Costs, Quality and Outcomes $92,445 Yes 0
93.393 Covid-19 Cancer Cause and Prevention Research $89,637 Yes 0
93.110 Maternal and Child Health Federal Consolidated Programs $87,720 - 0
93.262 Occupational Safety and Health Program $86,565 Yes 0
93.686 Covid-19 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $79,936 - 0
93.326 Strengthening Public Health Through Surveillance, Epidemiologic Research, Disease Detection and Prevention $78,357 Yes 0
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $78,151 Yes 0
93.U03 Centers for Diseases Control and Prevention Contracts $73,401 - 0
93.186 National Research Service Award in Primary Care Medicine $73,273 Yes 0
16.575 Crime Victim Assistance $66,146 - 0
93.837 Cardiovascular Diseases Research $64,823 Yes 0
93.RD U.s. Department of Justice Contracts $63,804 Yes 0
93.946 Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs $57,907 Yes 0
47.049 Mathematical and Physical Sciences $57,716 Yes 0
93.235 Title V State Sexual Risk Avoidance Education (title V State Srae) Program $57,388 - 0
93.879 Medical Library Assistance $56,836 Yes 0
93.865 Child Health and Human Development Extramural Research $56,307 Yes 0
93.242 Mental Health Research Grants $54,840 Yes 0
93.RD Covid-19 National Institutes of Health Contracts $54,429 Yes 0
93.398 Cancer Research Manpower $51,865 Yes 0
47.074 Biological Sciences $51,686 Yes 0
93.RD Consumer Product Safety Commission Contracts $51,394 Yes 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $50,841 Yes 0
93.867 Covid-19 Vision Research $48,793 Yes 0
93.853 Covid-19 Extramural Research Programs in the Neurosciences and Neurological Disorders $48,266 Yes 0
93.978 Sexually Transmitted Diseases (std) Provider Education Grants $47,396 - 0
93.310 Trans-Nih Research Support $45,869 Yes 0
93.RD Covid-19 U.s. Food & Drug Administration Contracts $45,590 Yes 0
93.928 Special Projects of National Significance $44,561 Yes 0
93.264 Nurse Faculty Loan Program (nflp) $43,601 Yes 0
93.384 Advanced Research Projects Agency for Health (arpa-H) $42,969 Yes 0
93.838 Covid-19 Lung Diseases Research $42,629 Yes 0
93.361 Covid-19 Nursing Research $42,448 Yes 0
93.398 Covid-19 Cancer Research Manpower $41,418 Yes 0
93.RD National Aeronautics and Space Administration Contracts $39,915 Yes 0
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $35,868 Yes 0
93.135 Centers for Research and Demonstration for Health Promotion and Disease Prevention $34,560 Yes 0
93.143 Niehs Superfund Hazardous Substances_basic Research and Education $31,300 Yes 0
93.RD Biomedical Advanced Research and Development Authority $29,862 Yes 0
93.989 International Research and Research Training $29,272 Yes 0
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $29,271 - 0
14.267 Continuum of Care Program $28,683 - 0
93.RD National Institutes of Health Contracts $28,531 Yes 0
93.846 Covid-19 Arthritis, Musculoskeletal and Skin Diseases Research $28,393 Yes 0
93.394 Covid-19 Cancer Detection and Diagnosis Research $26,857 Yes 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $25,764 Yes 0
93.185 Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects $25,000 Yes 0
93.855 Allergy and Infectious Diseases Research $23,700 Yes 0
47.083 Integrative Activities $22,765 Yes 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $22,728 - 0
12.420 Covid-19 Military Medical Research and Development $22,620 Yes 0
93.394 Cancer Detection and Diagnosis Research $22,588 Yes 0
93.RD U.s. Department of Transportation Contracts $19,560 Yes 0
93.860 Covid-19 Emerging Infections Sentinel Networks $19,179 Yes 0
93.732 Mental and Behavioral Health Education and Training Grants $15,876 Yes 0
11.609 Measurement and Engineering Research and Standards $15,732 Yes 0
93.318 Covid-19 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $14,583 - 0
43.001 Science $14,176 Yes 0
93.359 Nurse Education, Practice Quality and Retention Grants $13,333 Yes 0
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $13,215 Yes 0
93.301 Small Rural Hospital Improvement Grant Program $12,912 - 0
16.582 Crime Victim Assistance/discretionary Grants $12,900 - 0
93.RD Agency for Healthcare Research and Quality Contracts $12,471 Yes 0
93.738 Covid-19 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $11,436 Yes 0
93.067 Global Aids $11,344 Yes 0
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $10,812 Yes 0
10.569 Emergency Food Assistance Program (food Commodities) $10,192 - 0
47.075 Covid-19 Social, Behavioral, and Economic Sciences $9,096 Yes 0
93.077 Family Smoking Prevention and Tobacco Control Act Regulatory Research $9,001 Yes 0
11.307 Economic Adjustment Assistance $8,852 - 0
93.RD Department of Defense Contracts $7,035 Yes 0
93.145 Hiv-Related Training and Technical Assistance $6,877 Yes 0
93.847 Covid-19 Diabetes, Digestive, and Kidney Diseases Extramural Research $6,817 Yes 0
93.361 Nursing Research $6,680 Yes 0
47.079 Office of International Science and Engineering $6,480 Yes 0
93.RD Department of Veterans Affairs Contracts $5,319 Yes 0
93.052 National Family Caregiver Support, Title Iii, Part E $4,000 - 0
93.399 Cancer Control $3,021 Yes 0
93.866 Covid-19 Aging Research $2,909 Yes 0
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $800 - 0
21.019 Covid-19 Coronavirus Relief Fund $669 - 0
47.070 Computer and Information Science and Engineering $403 Yes 0
93.866 Aging Research $0 Yes 1
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $0 - 1
93.389 National Center for Research Resources $0 Yes 1
93.129 Technical and Non-Financial Assistance to Health Centers $-61 Yes 0
93.103 Food and Drug Administration Research $-91 Yes 0
93.RD Covid-19 Department of Defense Contracts $-509 Yes 0
47.041 Engineering $-563 Yes 0
93.279 Drug Abuse and Addiction Research Programs $-624 - 0
93.211 Telehealth Programs $-717 - 0
43.003 Exploration $-835 Yes 0
10.331 Covid-19 Food Insecurity Nutrition Incentive Grants Program $-859 Yes 0
93.121 Covid-19 Oral Diseases and Disorders Research $-1,233 Yes 0
19.040 Public Diplomacy Programs $-1,661 Yes 0
93.837 Covid-19 Cardiovascular Diseases Research $-1,788 Yes 0
93.266 Health Systems Strengthening and Hiv/aids Prevention, Care and Treatment Under the President's Emergency Plan for Aids Relief $-2,678 Yes 0
93.073 Birth Defects and Developmental Disabilities - Prevention and Surveillance $-4,197 - 0
12.910 Research and Technology Development $-6,345 Yes 0
98.006 Foreign Assistance to American Schools and Hospitals Abroad (asha) $-8,454 - 0
93.396 Cancer Biology Research $-8,686 Yes 0
98.001 Usaid Foreign Assistance for Programs Overseas $-10,345 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $-16,685 - 0
16.320 Services for Trafficking Victims $-17,297 Yes 0
84.411 Education Innovation and Research (formerly Investing in Innovation (i3) Fund) $-22,320 Yes 0
93.350 Covid-19 National Center for Advancing Translational Sciences $-22,499 Yes 0
93.958 Block Grants for Community Mental Health Services $-60,766 Yes 0
93.326 Covid-19 Strengthening Public Health Through Surveillance, Epidemiologic Research, Disease Detection and Prevention $-73,205 Yes 0
93.350 National Center for Advancing Translational Sciences $-276,949 Yes 0

Contacts

Name Title Type
YS8MKJGJN857 Rhonda Lowe Auditee
8572820711 Karen Pfeil Auditor
No contacts on file

Notes to SEFA

Title: 1. Organization Accounting Policies: Mass General Brigham Incorporated (the Company) is the parent organization and sole corporate member of numerous organizations whose financial condition and operations are described in the consolidated financial statements. The terms Mass General Brigham, We, Our or Us as used herein, unless otherwise stated or indicated by context, refer collectively to the Company and its affiliated organizations. Mass General Brigham operates academic medical centers, community acute care hospitals, inpatient and outpatient mental health services facilities, urgent care centers, facilities that provide rehabilitation medicine and long-term care services, physician organizations, home health services, nursing homes and a graduate level program for health professions. Our mission is to provide world class health care services to the local communities in which we operate as well as to patients across the United States and the world. In addition, we are a nonuniversity-based noprofit private medical research enterprise and a principal teaching affiliate of the medical and dental schools of Harvard University. Our licensed, not-for-profit managed care organization (Mass General Brigham Health Plan, Inc.) and licensed, for-profit insurance company (Mass General Brigham Health Insurance Company) (collectively referred to as Mass General Brigham Health Plan) provide health insurance products and administrative services to the Massachusetts Medicaid program (MassHealth), Medicare Advantage program, ConnectorCare (a state subsidized program for adults who meet income and immigration guidelines) and commercial populations. Summary of Significant Accounting Policies Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of Mass General Brigham and is recorded on the accrual basis of accounting. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Negative amounts represent adjustments to amounts reported as expenditures in prior years in the normal course of business. Assistance Listing Number (ALN) and pass-through award numbers are provided where available. The Schedule combines expenditures of The Brigham and Women’s Hospital, Inc., The General Hospital Corporation d/b/a The Massachusetts General Hospital, Massachusetts Eye and Ear Infirmary, including The Schepens Eye Research Institute, Inc., The McLean Hospital Corporation, The MGH Institute of Health Professions, Inc., The Spaulding Rehabilitation Hospital Corporation, Cooley Dickinson Hospital, Inc., North Shore Medical Center, Inc. d/b/a Salem Hospital, Newton-Wellesley Hospital, Martha’s Vineyard Hospital, Inc., Wentworth-Douglass Hospital, and Mass General Brigham Incorporated. These entities are all affiliates of Mass General Brigham. 2. Facilities and Administrative and Fringe Benefit Costs Federal expenditures for Research and Development and Research and Development Training for Brigham and Women’s Hospital, Massachusetts General Hospital, McLean, Massachusetts Eye and Ear Infirmary, Schepens Eye Research Institute, Spaulding Rehabilitation Hospital and the MGH Institute of Health Professions include facilities and administrative cost recoveries and fringe benefit cost recoveries in the amounts reported in the Schedule based on rates negotiated and awarded with the DHHS Division of Cost Allocation. These rates are based on financial information submitted utilizing the methods prescribed in Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, contained in the Code of Federal Regulation, Title 45, Part 74, Appendix E (OASC-3). The predetermined facilities and administrative cost rates for IHP are based on financial information submitted utilizing the simplified method for small institutions prescribed in Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs), contained in the Code of Federal Regulation, Title 2, Part 200, Appendix III. Expenditures reported in Training and Other include the maximum facilities and administrative recoveries approved by the sponsor. The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. De Minimis Rate Used: Both Rate Explanation: The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. Mass General Brigham Incorporated (the Company) is the parent organization and sole corporate member of numerous organizations whose financial condition and operations are described in the consolidated financial statements. The terms Mass General Brigham, We, Our or Us as used herein, unless otherwise stated or indicated by context, refer collectively to the Company and its affiliated organizations. Mass General Brigham operates academic medical centers, community acute care hospitals, inpatient and outpatient mental health services facilities, urgent care centers, facilities that provide rehabilitation medicine and long-term care services, physician organizations, home health services, nursing homes and a graduate level program for health professions. Our mission is to provide world class health care services to the local communities in which we operate as well as to patients across the United States and the world. In addition, we are a nonuniversity-based noprofit private medical research enterprise and a principal teaching affiliate of the medical and dental schools of Harvard University. Our licensed, not-for-profit managed care organization (Mass General Brigham Health Plan, Inc.) and licensed, for-profit insurance company (Mass General Brigham Health Insurance Company) (collectively referred to as Mass General Brigham Health Plan) provide health insurance products and administrative services to the Massachusetts Medicaid program (MassHealth), Medicare Advantage program, ConnectorCare (a state subsidized program for adults who meet income and immigration guidelines) and commercial populations.. Summary of Significant Accounting Policies Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of Mass General Brigham and is recorded on the accrual basis of accounting. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Negative amounts represent adjustments to amounts reported as expenditures in prior years in the normal course of business. Assistance Listing Number (ALN) and pass-through award numbers are provided where available. The Schedule combines expenditures of The Brigham and Women’s Hospital, Inc., The General Hospital Corporation d/b/a The Massachusetts General Hospital, Massachusetts Eye and Ear Infirmary, including The Schepens Eye Research Institute, Inc., The McLean Hospital Corporation, The MGH Institute of Health Professions, Inc., The Spaulding Rehabilitation Hospital Corporation, Cooley Dickinson Hospital, Inc., North Shore Medical Center, Inc. d/b/a Salem Hospital, Newton-Wellesley Hospital, Martha’s Vineyard Hospital, Inc., Wentworth-Douglass Hospital, and Mass General Brigham Incorporated. These entities are all affiliates of Mass General Brigham.
Title: 2. Facilities and Administrative and Fringe Benefit Costs Accounting Policies: Mass General Brigham Incorporated (the Company) is the parent organization and sole corporate member of numerous organizations whose financial condition and operations are described in the consolidated financial statements. The terms Mass General Brigham, We, Our or Us as used herein, unless otherwise stated or indicated by context, refer collectively to the Company and its affiliated organizations. Mass General Brigham operates academic medical centers, community acute care hospitals, inpatient and outpatient mental health services facilities, urgent care centers, facilities that provide rehabilitation medicine and long-term care services, physician organizations, home health services, nursing homes and a graduate level program for health professions. Our mission is to provide world class health care services to the local communities in which we operate as well as to patients across the United States and the world. In addition, we are a nonuniversity-based noprofit private medical research enterprise and a principal teaching affiliate of the medical and dental schools of Harvard University. Our licensed, not-for-profit managed care organization (Mass General Brigham Health Plan, Inc.) and licensed, for-profit insurance company (Mass General Brigham Health Insurance Company) (collectively referred to as Mass General Brigham Health Plan) provide health insurance products and administrative services to the Massachusetts Medicaid program (MassHealth), Medicare Advantage program, ConnectorCare (a state subsidized program for adults who meet income and immigration guidelines) and commercial populations. Summary of Significant Accounting Policies Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of Mass General Brigham and is recorded on the accrual basis of accounting. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Negative amounts represent adjustments to amounts reported as expenditures in prior years in the normal course of business. Assistance Listing Number (ALN) and pass-through award numbers are provided where available. The Schedule combines expenditures of The Brigham and Women’s Hospital, Inc., The General Hospital Corporation d/b/a The Massachusetts General Hospital, Massachusetts Eye and Ear Infirmary, including The Schepens Eye Research Institute, Inc., The McLean Hospital Corporation, The MGH Institute of Health Professions, Inc., The Spaulding Rehabilitation Hospital Corporation, Cooley Dickinson Hospital, Inc., North Shore Medical Center, Inc. d/b/a Salem Hospital, Newton-Wellesley Hospital, Martha’s Vineyard Hospital, Inc., Wentworth-Douglass Hospital, and Mass General Brigham Incorporated. These entities are all affiliates of Mass General Brigham. 2. Facilities and Administrative and Fringe Benefit Costs Federal expenditures for Research and Development and Research and Development Training for Brigham and Women’s Hospital, Massachusetts General Hospital, McLean, Massachusetts Eye and Ear Infirmary, Schepens Eye Research Institute, Spaulding Rehabilitation Hospital and the MGH Institute of Health Professions include facilities and administrative cost recoveries and fringe benefit cost recoveries in the amounts reported in the Schedule based on rates negotiated and awarded with the DHHS Division of Cost Allocation. These rates are based on financial information submitted utilizing the methods prescribed in Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, contained in the Code of Federal Regulation, Title 45, Part 74, Appendix E (OASC-3). The predetermined facilities and administrative cost rates for IHP are based on financial information submitted utilizing the simplified method for small institutions prescribed in Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs), contained in the Code of Federal Regulation, Title 2, Part 200, Appendix III. Expenditures reported in Training and Other include the maximum facilities and administrative recoveries approved by the sponsor. The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. De Minimis Rate Used: Both Rate Explanation: The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. Federal expenditures for Research and Development and Research and Development Training for Brigham and Women’s Hospital, Massachusetts General Hospital, McLean, Massachusetts Eye and Ear Infirmary, Schepens Eye Research Institute, Spaulding Rehabilitation Hospital and the MGH Institute of Health Professions include facilities and administrative cost recoveries and fringe benefit cost recoveries in the amounts reported in the Schedule based on rates negotiated and awarded with the DHHS Division of Cost Allocation. These rates are based on financial information submitted utilizing the methods prescribed in Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, contained in the Code of Federal Regulation, Title 45, Part 74, Appendix E (OASC-3). The predetermined facilities and administrative cost rates for IHP are based on financial information submitted utilizing the simplified method for small institutions prescribed in Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs), contained in the Code of Federal Regulation, Title 2, Part 200, Appendix III. Expenditures reported in Training and Other include the maximum facilities and administrative recoveries approved by the sponsor. The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed.
Title: 3. Federal Student Loan Programs Accounting Policies: Mass General Brigham Incorporated (the Company) is the parent organization and sole corporate member of numerous organizations whose financial condition and operations are described in the consolidated financial statements. The terms Mass General Brigham, We, Our or Us as used herein, unless otherwise stated or indicated by context, refer collectively to the Company and its affiliated organizations. Mass General Brigham operates academic medical centers, community acute care hospitals, inpatient and outpatient mental health services facilities, urgent care centers, facilities that provide rehabilitation medicine and long-term care services, physician organizations, home health services, nursing homes and a graduate level program for health professions. Our mission is to provide world class health care services to the local communities in which we operate as well as to patients across the United States and the world. In addition, we are a nonuniversity-based noprofit private medical research enterprise and a principal teaching affiliate of the medical and dental schools of Harvard University. Our licensed, not-for-profit managed care organization (Mass General Brigham Health Plan, Inc.) and licensed, for-profit insurance company (Mass General Brigham Health Insurance Company) (collectively referred to as Mass General Brigham Health Plan) provide health insurance products and administrative services to the Massachusetts Medicaid program (MassHealth), Medicare Advantage program, ConnectorCare (a state subsidized program for adults who meet income and immigration guidelines) and commercial populations. Summary of Significant Accounting Policies Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of Mass General Brigham and is recorded on the accrual basis of accounting. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Negative amounts represent adjustments to amounts reported as expenditures in prior years in the normal course of business. Assistance Listing Number (ALN) and pass-through award numbers are provided where available. The Schedule combines expenditures of The Brigham and Women’s Hospital, Inc., The General Hospital Corporation d/b/a The Massachusetts General Hospital, Massachusetts Eye and Ear Infirmary, including The Schepens Eye Research Institute, Inc., The McLean Hospital Corporation, The MGH Institute of Health Professions, Inc., The Spaulding Rehabilitation Hospital Corporation, Cooley Dickinson Hospital, Inc., North Shore Medical Center, Inc. d/b/a Salem Hospital, Newton-Wellesley Hospital, Martha’s Vineyard Hospital, Inc., Wentworth-Douglass Hospital, and Mass General Brigham Incorporated. These entities are all affiliates of Mass General Brigham. 2. Facilities and Administrative and Fringe Benefit Costs Federal expenditures for Research and Development and Research and Development Training for Brigham and Women’s Hospital, Massachusetts General Hospital, McLean, Massachusetts Eye and Ear Infirmary, Schepens Eye Research Institute, Spaulding Rehabilitation Hospital and the MGH Institute of Health Professions include facilities and administrative cost recoveries and fringe benefit cost recoveries in the amounts reported in the Schedule based on rates negotiated and awarded with the DHHS Division of Cost Allocation. These rates are based on financial information submitted utilizing the methods prescribed in Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, contained in the Code of Federal Regulation, Title 45, Part 74, Appendix E (OASC-3). The predetermined facilities and administrative cost rates for IHP are based on financial information submitted utilizing the simplified method for small institutions prescribed in Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs), contained in the Code of Federal Regulation, Title 2, Part 200, Appendix III. Expenditures reported in Training and Other include the maximum facilities and administrative recoveries approved by the sponsor. The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. De Minimis Rate Used: Both Rate Explanation: The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. The amounts reported in the Student Financial Aid Cluster of the Schedule represent the beginning balances and newly issued loans in fiscal year 2024. As of September 30, 2024, the MGH Institute of Health Professions (IHP) had loans outstanding of $163,541 for loans issued as part of the Nurse Faculty Loan Program (ALN 93.264). IHP had Direct Loans issued by the Department of Education of $39,938,423 as of September 30, 2024 for ALN 84.268.
Title: 4. Federal Emergency Management Agency (FEMA) Public Assistance Accounting Policies: Mass General Brigham Incorporated (the Company) is the parent organization and sole corporate member of numerous organizations whose financial condition and operations are described in the consolidated financial statements. The terms Mass General Brigham, We, Our or Us as used herein, unless otherwise stated or indicated by context, refer collectively to the Company and its affiliated organizations. Mass General Brigham operates academic medical centers, community acute care hospitals, inpatient and outpatient mental health services facilities, urgent care centers, facilities that provide rehabilitation medicine and long-term care services, physician organizations, home health services, nursing homes and a graduate level program for health professions. Our mission is to provide world class health care services to the local communities in which we operate as well as to patients across the United States and the world. In addition, we are a nonuniversity-based noprofit private medical research enterprise and a principal teaching affiliate of the medical and dental schools of Harvard University. Our licensed, not-for-profit managed care organization (Mass General Brigham Health Plan, Inc.) and licensed, for-profit insurance company (Mass General Brigham Health Insurance Company) (collectively referred to as Mass General Brigham Health Plan) provide health insurance products and administrative services to the Massachusetts Medicaid program (MassHealth), Medicare Advantage program, ConnectorCare (a state subsidized program for adults who meet income and immigration guidelines) and commercial populations. Summary of Significant Accounting Policies Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of Mass General Brigham and is recorded on the accrual basis of accounting. The information in the Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements. Negative amounts represent adjustments to amounts reported as expenditures in prior years in the normal course of business. Assistance Listing Number (ALN) and pass-through award numbers are provided where available. The Schedule combines expenditures of The Brigham and Women’s Hospital, Inc., The General Hospital Corporation d/b/a The Massachusetts General Hospital, Massachusetts Eye and Ear Infirmary, including The Schepens Eye Research Institute, Inc., The McLean Hospital Corporation, The MGH Institute of Health Professions, Inc., The Spaulding Rehabilitation Hospital Corporation, Cooley Dickinson Hospital, Inc., North Shore Medical Center, Inc. d/b/a Salem Hospital, Newton-Wellesley Hospital, Martha’s Vineyard Hospital, Inc., Wentworth-Douglass Hospital, and Mass General Brigham Incorporated. These entities are all affiliates of Mass General Brigham. 2. Facilities and Administrative and Fringe Benefit Costs Federal expenditures for Research and Development and Research and Development Training for Brigham and Women’s Hospital, Massachusetts General Hospital, McLean, Massachusetts Eye and Ear Infirmary, Schepens Eye Research Institute, Spaulding Rehabilitation Hospital and the MGH Institute of Health Professions include facilities and administrative cost recoveries and fringe benefit cost recoveries in the amounts reported in the Schedule based on rates negotiated and awarded with the DHHS Division of Cost Allocation. These rates are based on financial information submitted utilizing the methods prescribed in Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, contained in the Code of Federal Regulation, Title 45, Part 74, Appendix E (OASC-3). The predetermined facilities and administrative cost rates for IHP are based on financial information submitted utilizing the simplified method for small institutions prescribed in Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs), contained in the Code of Federal Regulation, Title 2, Part 200, Appendix III. Expenditures reported in Training and Other include the maximum facilities and administrative recoveries approved by the sponsor. The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. De Minimis Rate Used: Both Rate Explanation: The 10% de-minimis rate is not utilized on Research and Development or Research and Development Training by Mass General Brigham because they have approved negotiated rate agreements. The 10% de-minimis rate is used for Other awards where allowed. Mass General Brigham applied for reimbursement of certain expenses related to the COVID-19 pandemic under Assistance Listing #97.036, FEMA Public Assistance through the Commonwealth of Massachusetts and the State of New Hampshire. Expenditures are reflected in the Schedule of Federal Expenditures (SEFA) in the year in which a project application is obligated. The Schedule thus includes $39,399,739 of expenditures incurred in Fiscal years 2020, 2021 and 2022, which were obligated in fiscal year 2024 and represents a reconciling item between the federal expenses in Mass General Brigham’s financial statements and the amount included on the Schedule.

Finding Details

Non-Compliance with Monthly Direct Loan Reconciliations Grantor: U.S. Department of Education Cluster: Student Financial Assistance Cluster Award Names: Federal Direct Loan Program Award Numbers: Not applicable Assistance Listing Number: 84.268 Award Year: 2023 – 2024 Criteria In accordance with 34 CFR 685.300(b)(5), on a monthly basis, institutions are required to reconcile institutional records with Direct Loan funds received from the Department of Education and Direct Loan disbursement records submitted to and accepted by the Department of Education. Condition The Company could not evidence that a monthly reconciliation was being performed between Direct Loan funds received from the Department of Education and Direct Loan disbursement records submitted to the Department of Education. Cause The Company indicated it performs a weekly reconciliation between funds received and funds disbursed to the Department of Education in order to determine the amount to return to or request from the Department. However, evidence of this reconciliation is not retained. Effect There is no evidence that the reconciliations were performed during the fiscal year. We could not observe evidence of this weekly reconciliation as part of audit procedures. Questioned Costs There are no questioned costs, as this is a documentation matter with no evidence of erroneous drawdowns and disbursements found in our testing. Recommendation We recommend that the Company update/enhance its procedures related to ensuring reconciliations are performed monthly and the audit evidence associated with the direct loan reconciliation and disbursements process is retained. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.
Equipment Management Grantor: Various Cluster: Research & Development Award Names: Various Award Numbers: Various Assistance Listing Number: Various Award Year: Various Criteria 2 CFR 200.313 (d)(1-2) indicates that a physical inventory of federal equipment must be taken and the results reconciled with property records at least once every two years. Additionally, accurate property records must be maintained which include various identifying information, such as the location, use and condition of the property and any ultimate disposition data, including the date of disposal and sale of the property. Condition In testing the Company’s conformity with the compliance requirements for equipment management, we selected 25 pieces of equipment from the detailed listings provided to physically inspect. Additionally, in order to test the completeness of the detailed listings, we selected 25 pieces of equipment from the “floor” and traced these to the detailed listings provided. Through our testing, we noted the following: • Two pieces of equipment out of the 25 selections made from the detailed listings for physical inspection were incorrectly included in the listings. o One asset was moved to another institution with the associated principal investigator. The asset was not included in the list of equipment approved for the transfer with the departure of the principal investigator. The department continued to certify the asset was in service after the transfer of the asset. The acquisition price of the asset was $6,023.36. o The second asset was acquired in 2008 and sold in 2023, at the direction of the principal investigator, with the proceeds of the sale allocated to a non-federal internal research fund. The department continued to certify the asset was in service after the disposal of the asset. Cause For the first asset that was improperly included in the detailed listing, two pieces of the same equipment were purchased together, and one of the two pieces of equipment was retained, which caused the department to inadvertently certify that both assets were still in service. Further, the asset was not included on the list of equipment approved for transfer with the principal investigator’s departure from the Company. For the second asset, the principal investigator in charge of the equipment is in the process of leaving the Company, and the department is moving or disposing of his equipment. The equipment management team was waiting until the Investigator’s space was completely cleared before updating the inventory listings. Effect The process around the transfer and/or disposal of equipment when there is a transfer of an award, or a transfer of the principal investigator is not properly reflected in the Company’s inventory records. Questioned Costs There are no questioned costs. Under the Federal Grant and Cooperative Agreement Act, 31 U.S.C. 6306, NIH permits institutions to obtain title to equipment for support of basic or applied scientific research without further obligation to the Federal government. NIH has the right to require transfer of title to equipment with an acquisition cost of $5,000 or more to the Federal government within 120 of the completion of the award. The associated award ended prior to FY24, so the title transfer period has expired. Therefore, the equipment disposal did not result in questioned costs. Recommendation We recommend that the Company provide additional training to the principal investigators and other grant personnel focusing on the policies and procedures around federal equipment management. Specifically, the training should emphasize the importance of accuracy in the disposal request forms, including federal funding. The training should also focus on the importance of timely updates to the equipment inventory listing to ensure the listing is complete and accurate. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.
Equipment Management Grantor: Various Cluster: Research & Development Award Names: Various Award Numbers: Various Assistance Listing Number: Various Award Year: Various Criteria 2 CFR 200.313 (d)(1-2) indicates that a physical inventory of federal equipment must be taken and the results reconciled with property records at least once every two years. Additionally, accurate property records must be maintained which include various identifying information, such as the location, use and condition of the property and any ultimate disposition data, including the date of disposal and sale of the property. Condition In testing the Company’s conformity with the compliance requirements for equipment management, we selected 25 pieces of equipment from the detailed listings provided to physically inspect. Additionally, in order to test the completeness of the detailed listings, we selected 25 pieces of equipment from the “floor” and traced these to the detailed listings provided. Through our testing, we noted the following: • Two pieces of equipment out of the 25 selections made from the detailed listings for physical inspection were incorrectly included in the listings. o One asset was moved to another institution with the associated principal investigator. The asset was not included in the list of equipment approved for the transfer with the departure of the principal investigator. The department continued to certify the asset was in service after the transfer of the asset. The acquisition price of the asset was $6,023.36. o The second asset was acquired in 2008 and sold in 2023, at the direction of the principal investigator, with the proceeds of the sale allocated to a non-federal internal research fund. The department continued to certify the asset was in service after the disposal of the asset. Cause For the first asset that was improperly included in the detailed listing, two pieces of the same equipment were purchased together, and one of the two pieces of equipment was retained, which caused the department to inadvertently certify that both assets were still in service. Further, the asset was not included on the list of equipment approved for transfer with the principal investigator’s departure from the Company. For the second asset, the principal investigator in charge of the equipment is in the process of leaving the Company, and the department is moving or disposing of his equipment. The equipment management team was waiting until the Investigator’s space was completely cleared before updating the inventory listings. Effect The process around the transfer and/or disposal of equipment when there is a transfer of an award, or a transfer of the principal investigator is not properly reflected in the Company’s inventory records. Questioned Costs There are no questioned costs. Under the Federal Grant and Cooperative Agreement Act, 31 U.S.C. 6306, NIH permits institutions to obtain title to equipment for support of basic or applied scientific research without further obligation to the Federal government. NIH has the right to require transfer of title to equipment with an acquisition cost of $5,000 or more to the Federal government within 120 of the completion of the award. The associated award ended prior to FY24, so the title transfer period has expired. Therefore, the equipment disposal did not result in questioned costs. Recommendation We recommend that the Company provide additional training to the principal investigators and other grant personnel focusing on the policies and procedures around federal equipment management. Specifically, the training should emphasize the importance of accuracy in the disposal request forms, including federal funding. The training should also focus on the importance of timely updates to the equipment inventory listing to ensure the listing is complete and accurate. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.
Cash Management Grantor: Department of Health and Human Services Pass Through Entity: Advanced Regenerative Manufacturing Institute, Inc. Award Name: Hospital Preparedness Program (HPP) Ebola Preparedness and Response Activities Award Number: IDSEP22005-003 Assistance Listing Number: 93.817 Award Year: June 1, 2023-September 30, 2023 Criteria In accordance with 2 CFR 200.305 (b)(3), reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non-Federal entity requests payment by reimbursement. In accordance with 2 CFR 200.334 (c) and (e), a subrecipient must liquidate all financial obligations incurred under a subaward no later than 90 calendar days after the conclusion of the period of performance of the subaward (or an earlier date as agreed upon by the pass-through entity and subrecipient). The subrecipient must promptly refund any unobligated funds that the pass-through entity paid and that are not authorized to be retained. Condition In testing the period of performance compliance requirement in accordance with the OMB Compliance Supplement, we requested support for the expenditures on the FY2024 Schedule of Federal Awards, as they were outside of the period of performance of the subaward, which ended September 30, 2023. The Company issued an invoice to Advanced Regenerative Manufacturing Institute, the Prime awardee, for $215,192 on September 14, 2023, but did not incur those expenses until after the period of performance of the subaward. Therefore, the Company requested and received the funds in advance of incurring the expenses. Further, the Company did not liquidate its obligations under the subaward within the required 90 calendar days after the conclusion of the performance of the subaward, as expenditures were recorded through August 2024. There were no terms in the award that allowed retention of unused funds. Cause The grant personnel were not aware of the invoicing requirements under the reimbursement method and invoiced the Prime awardee in advance of incurring the associated costs. Effect Federal funds were obtained in advance of incurring costs and outside of the period of performance of the subaward. Questioned Costs $215,192 Recommendation We recommend that the Company return the advance funds received to the Prime. Further, the Company should consider the need for clarifying and/or enhancing existing internal control procedures to ensure expenditures are paid in compliance with Federal reimbursement requirements and that requests for reimbursement are reviewed and validated against supporting documentation to identify any discrepancies prior to requesting reimbursement. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.
Non-Compliance with Monthly Direct Loan Reconciliations Grantor: U.S. Department of Education Cluster: Student Financial Assistance Cluster Award Names: Federal Direct Loan Program Award Numbers: Not applicable Assistance Listing Number: 84.268 Award Year: 2023 – 2024 Criteria In accordance with 34 CFR 685.300(b)(5), on a monthly basis, institutions are required to reconcile institutional records with Direct Loan funds received from the Department of Education and Direct Loan disbursement records submitted to and accepted by the Department of Education. Condition The Company could not evidence that a monthly reconciliation was being performed between Direct Loan funds received from the Department of Education and Direct Loan disbursement records submitted to the Department of Education. Cause The Company indicated it performs a weekly reconciliation between funds received and funds disbursed to the Department of Education in order to determine the amount to return to or request from the Department. However, evidence of this reconciliation is not retained. Effect There is no evidence that the reconciliations were performed during the fiscal year. We could not observe evidence of this weekly reconciliation as part of audit procedures. Questioned Costs There are no questioned costs, as this is a documentation matter with no evidence of erroneous drawdowns and disbursements found in our testing. Recommendation We recommend that the Company update/enhance its procedures related to ensuring reconciliations are performed monthly and the audit evidence associated with the direct loan reconciliation and disbursements process is retained. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.
Equipment Management Grantor: Various Cluster: Research & Development Award Names: Various Award Numbers: Various Assistance Listing Number: Various Award Year: Various Criteria 2 CFR 200.313 (d)(1-2) indicates that a physical inventory of federal equipment must be taken and the results reconciled with property records at least once every two years. Additionally, accurate property records must be maintained which include various identifying information, such as the location, use and condition of the property and any ultimate disposition data, including the date of disposal and sale of the property. Condition In testing the Company’s conformity with the compliance requirements for equipment management, we selected 25 pieces of equipment from the detailed listings provided to physically inspect. Additionally, in order to test the completeness of the detailed listings, we selected 25 pieces of equipment from the “floor” and traced these to the detailed listings provided. Through our testing, we noted the following: • Two pieces of equipment out of the 25 selections made from the detailed listings for physical inspection were incorrectly included in the listings. o One asset was moved to another institution with the associated principal investigator. The asset was not included in the list of equipment approved for the transfer with the departure of the principal investigator. The department continued to certify the asset was in service after the transfer of the asset. The acquisition price of the asset was $6,023.36. o The second asset was acquired in 2008 and sold in 2023, at the direction of the principal investigator, with the proceeds of the sale allocated to a non-federal internal research fund. The department continued to certify the asset was in service after the disposal of the asset. Cause For the first asset that was improperly included in the detailed listing, two pieces of the same equipment were purchased together, and one of the two pieces of equipment was retained, which caused the department to inadvertently certify that both assets were still in service. Further, the asset was not included on the list of equipment approved for transfer with the principal investigator’s departure from the Company. For the second asset, the principal investigator in charge of the equipment is in the process of leaving the Company, and the department is moving or disposing of his equipment. The equipment management team was waiting until the Investigator’s space was completely cleared before updating the inventory listings. Effect The process around the transfer and/or disposal of equipment when there is a transfer of an award, or a transfer of the principal investigator is not properly reflected in the Company’s inventory records. Questioned Costs There are no questioned costs. Under the Federal Grant and Cooperative Agreement Act, 31 U.S.C. 6306, NIH permits institutions to obtain title to equipment for support of basic or applied scientific research without further obligation to the Federal government. NIH has the right to require transfer of title to equipment with an acquisition cost of $5,000 or more to the Federal government within 120 of the completion of the award. The associated award ended prior to FY24, so the title transfer period has expired. Therefore, the equipment disposal did not result in questioned costs. Recommendation We recommend that the Company provide additional training to the principal investigators and other grant personnel focusing on the policies and procedures around federal equipment management. Specifically, the training should emphasize the importance of accuracy in the disposal request forms, including federal funding. The training should also focus on the importance of timely updates to the equipment inventory listing to ensure the listing is complete and accurate. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.
Equipment Management Grantor: Various Cluster: Research & Development Award Names: Various Award Numbers: Various Assistance Listing Number: Various Award Year: Various Criteria 2 CFR 200.313 (d)(1-2) indicates that a physical inventory of federal equipment must be taken and the results reconciled with property records at least once every two years. Additionally, accurate property records must be maintained which include various identifying information, such as the location, use and condition of the property and any ultimate disposition data, including the date of disposal and sale of the property. Condition In testing the Company’s conformity with the compliance requirements for equipment management, we selected 25 pieces of equipment from the detailed listings provided to physically inspect. Additionally, in order to test the completeness of the detailed listings, we selected 25 pieces of equipment from the “floor” and traced these to the detailed listings provided. Through our testing, we noted the following: • Two pieces of equipment out of the 25 selections made from the detailed listings for physical inspection were incorrectly included in the listings. o One asset was moved to another institution with the associated principal investigator. The asset was not included in the list of equipment approved for the transfer with the departure of the principal investigator. The department continued to certify the asset was in service after the transfer of the asset. The acquisition price of the asset was $6,023.36. o The second asset was acquired in 2008 and sold in 2023, at the direction of the principal investigator, with the proceeds of the sale allocated to a non-federal internal research fund. The department continued to certify the asset was in service after the disposal of the asset. Cause For the first asset that was improperly included in the detailed listing, two pieces of the same equipment were purchased together, and one of the two pieces of equipment was retained, which caused the department to inadvertently certify that both assets were still in service. Further, the asset was not included on the list of equipment approved for transfer with the principal investigator’s departure from the Company. For the second asset, the principal investigator in charge of the equipment is in the process of leaving the Company, and the department is moving or disposing of his equipment. The equipment management team was waiting until the Investigator’s space was completely cleared before updating the inventory listings. Effect The process around the transfer and/or disposal of equipment when there is a transfer of an award, or a transfer of the principal investigator is not properly reflected in the Company’s inventory records. Questioned Costs There are no questioned costs. Under the Federal Grant and Cooperative Agreement Act, 31 U.S.C. 6306, NIH permits institutions to obtain title to equipment for support of basic or applied scientific research without further obligation to the Federal government. NIH has the right to require transfer of title to equipment with an acquisition cost of $5,000 or more to the Federal government within 120 of the completion of the award. The associated award ended prior to FY24, so the title transfer period has expired. Therefore, the equipment disposal did not result in questioned costs. Recommendation We recommend that the Company provide additional training to the principal investigators and other grant personnel focusing on the policies and procedures around federal equipment management. Specifically, the training should emphasize the importance of accuracy in the disposal request forms, including federal funding. The training should also focus on the importance of timely updates to the equipment inventory listing to ensure the listing is complete and accurate. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.
Cash Management Grantor: Department of Health and Human Services Pass Through Entity: Advanced Regenerative Manufacturing Institute, Inc. Award Name: Hospital Preparedness Program (HPP) Ebola Preparedness and Response Activities Award Number: IDSEP22005-003 Assistance Listing Number: 93.817 Award Year: June 1, 2023-September 30, 2023 Criteria In accordance with 2 CFR 200.305 (b)(3), reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non-Federal entity requests payment by reimbursement. In accordance with 2 CFR 200.334 (c) and (e), a subrecipient must liquidate all financial obligations incurred under a subaward no later than 90 calendar days after the conclusion of the period of performance of the subaward (or an earlier date as agreed upon by the pass-through entity and subrecipient). The subrecipient must promptly refund any unobligated funds that the pass-through entity paid and that are not authorized to be retained. Condition In testing the period of performance compliance requirement in accordance with the OMB Compliance Supplement, we requested support for the expenditures on the FY2024 Schedule of Federal Awards, as they were outside of the period of performance of the subaward, which ended September 30, 2023. The Company issued an invoice to Advanced Regenerative Manufacturing Institute, the Prime awardee, for $215,192 on September 14, 2023, but did not incur those expenses until after the period of performance of the subaward. Therefore, the Company requested and received the funds in advance of incurring the expenses. Further, the Company did not liquidate its obligations under the subaward within the required 90 calendar days after the conclusion of the performance of the subaward, as expenditures were recorded through August 2024. There were no terms in the award that allowed retention of unused funds. Cause The grant personnel were not aware of the invoicing requirements under the reimbursement method and invoiced the Prime awardee in advance of incurring the associated costs. Effect Federal funds were obtained in advance of incurring costs and outside of the period of performance of the subaward. Questioned Costs $215,192 Recommendation We recommend that the Company return the advance funds received to the Prime. Further, the Company should consider the need for clarifying and/or enhancing existing internal control procedures to ensure expenditures are paid in compliance with Federal reimbursement requirements and that requests for reimbursement are reviewed and validated against supporting documentation to identify any discrepancies prior to requesting reimbursement. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan are included at the end of this report after the summary schedule of prior audit findings and status.