Audit 343831

FY End
2023-12-31
Total Expended
$1.90M
Findings
6
Programs
3
Organization: Pop Biotechnologies Inc. (NY)
Year: 2023 Accepted: 2025-02-26

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
524485 2024-001 Significant Deficiency - G
524486 2024-002 Significant Deficiency - G
524487 2024-003 Significant Deficiency - I
1100927 2024-001 Significant Deficiency - G
1100928 2024-002 Significant Deficiency - G
1100929 2024-003 Significant Deficiency - I

Contacts

Name Title Type
ZWKMU75DGJY4 Jonathan Smyth Auditee
3152000087 Jeffrey Jackson CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presenta􀆟on Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of POP Biotechnologies Inc. (the Company) and is presented on the accrual basis of accounting. The information on the 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 (the Uniform Guidance). For purposes of the Schedule, federal awards include any assistance provided by a federal agency directly or indirectly in the form of grants, contracts, cooperative agreements, loan and loan guarantees, or other non-cash assistance. In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Note 4). Therefore, some amounts presented in the accompanying Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of the Company. Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services (HHS) Cost Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals at 45 CFR Part 75 Appendix IX for awards subject to the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Uniform Guidance provides for a 10% de minimis indirect cost rate election; however, the Company did not make this election
Title: Chemotherapy with Light-Activated Nanoparticulate Doxorubicin Accounting Policies: Accrual Basis De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate During the year ended December 31, 2023, the Company par􀆟cipated in Cancer research (Federal Assistance Listing Number 93.395) through subcontracts with subrecipients. HHS, the federal agency that sponsors this program, has determined that the money to subrecipients should considered Federal Expenditures and, therefore, should be reported as federal awards received. Thus, the amount passed through to subrecipients was reported as Federal Expenditures on the Schedule of Expenditures of Federal Awards

Finding Details

POP Biotechnologies Inc lacks internal controls on expenditures in excess of a pre-defined threshold. Purchasing thresholds are used to monitor and control large purchases above a stated threshold. A threshold also provides additional oversight in the purchasing process. A second approver for payment of certain expenditures in excess of the stated threshold in a company procurement policy is considered a strong control.
POP Biotechnologies Inc For the selection of two subcontractors has not utilized process to develop a Request for Proposal (RFP) consistent with requirements outlined in 2 C.F.R. Subpart F. This includes independent auditor submission requirement, as well as, the relevant media publishing requirement. The auditor identified a need to develop RFP or RFQ requirements to maintain adequate internal controls.
POP Biotechnologies Inc for procurement, upon the selection of two subcontractors which was utilized by the Corporation during the year that received federal expenditures greater than the micro-purchase threshold, but did not exceed the simplified acquisition threshold, this purchase did not go through a procurement process. The auditor identified a need to develop RFP or RFQ requirements to maintain adequate internal controls.
POP Biotechnologies Inc lacks internal controls on expenditures in excess of a pre-defined threshold. Purchasing thresholds are used to monitor and control large purchases above a stated threshold. A threshold also provides additional oversight in the purchasing process. A second approver for payment of certain expenditures in excess of the stated threshold in a company procurement policy is considered a strong control.
POP Biotechnologies Inc For the selection of two subcontractors has not utilized process to develop a Request for Proposal (RFP) consistent with requirements outlined in 2 C.F.R. Subpart F. This includes independent auditor submission requirement, as well as, the relevant media publishing requirement. The auditor identified a need to develop RFP or RFQ requirements to maintain adequate internal controls.
POP Biotechnologies Inc for procurement, upon the selection of two subcontractors which was utilized by the Corporation during the year that received federal expenditures greater than the micro-purchase threshold, but did not exceed the simplified acquisition threshold, this purchase did not go through a procurement process. The auditor identified a need to develop RFP or RFQ requirements to maintain adequate internal controls.