FAC Explorer

Audit 353994

FY End
2024-09-30
Total Expended
$978,619
Findings
12
Programs
2
Organization: Topos Institute (WA)
Year: 2024 Accepted: 2025-04-18
Auditor: Clark Nuber P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555374 2024-001 Significant Deficiency - B
555375 2024-001 Significant Deficiency - B
555376 2024-001 Significant Deficiency - B
555377 2024-001 Significant Deficiency - B
555378 2024-001 Significant Deficiency - B
555379 2024-001 Significant Deficiency - B
1131816 2024-001 Significant Deficiency - B
1131817 2024-001 Significant Deficiency - B
1131818 2024-001 Significant Deficiency - B
1131819 2024-001 Significant Deficiency - B
1131820 2024-001 Significant Deficiency - B
1131821 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
12.910 Research and Technology Development $333,489 Yes 1
12.800 Air Force Defense Research Sciences Program $331,693 Yes 1

Contacts

Name Title Type
MJ81DV9UL8D7 Brendan Fong Auditee
5105992239 Troy Rector Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such audit, certain expenses incurred are determined to be nonreimbursable, Topos may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: N Rate Explanation: Topos has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Topos Institute (Topos) under programs of the federal government for the year ended September 30, 2024. 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). Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, functional expenses or cash flows of Topos.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such audit, certain expenses incurred are determined to be nonreimbursable, Topos may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: N Rate Explanation: Topos has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such audit, certain expenses incurred are determined to be nonreimbursable, Topos may be liable for repayment of disallowed expenses previously claimed or received.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such audit, certain expenses incurred are determined to be nonreimbursable, Topos may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: N Rate Explanation: Topos has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance. Topos has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.
Finding 2024-001
Finding 2024-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: Department of Defense Program Titles: Air Force Defense Research Sciences Program and Research and Technology Development Assistance Listing Number: 12.800 and 12.910 Award Number: All Award Period: September 15, 2020 - September 14, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Additionally, that costs must be accounted for in accordance generally accepted accounting principles (GAAP) and be given consistent treatment. Topos Institute’s internal controls over allowable costs failed to remove these items from allowable costs. Condition/Context During testing of allowable costs, there was once instance where unallowable costs were charged to the indirect cost pool. Additionally, two instances where subscription costs were not accounted for in accordance with GAAP and one instance where a service fee was expensed in the incorrect period. Finally, one instance where two items were purchased but only one item was charged to the indirect cost pool, however the full amount of the tax was inappropriately allocated to the indirect cost pool for the Federal awards. Questioned Costs $3,494 Cause The Institute’s operation of internal controls was not sufficient to ensure that no unallowable costs, costs not charged in accordance with GAAP, and cost not allocated equitably were charged to the federal funding. Effect Based on the exception noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Institute ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.