Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.
Procurement
Cluster: Research and Development (R&D)
Federal Agency: Various
Assistance Listing Title and Number: Various
Award Name: Various
Award Identifying Number: Various
Award Year: Fiscal year 2024
Pass-Through Entity: Various
Criteria
2 CFR 200.320(a) establishes informal procurement methods, including micro-purchases in 2 CFR
200.320 (a)(1), for small purchases in order to expedite the completion of transaction, minimize
administrative burdens, and reduce costs. 2 CFR 200.320(a)(1)(v) allows recipients to increase the micropurchase
thresholds to higher than $50,000 with approval of the entity’s cognizant agency for indirect
costs. The request must include a self-certification of the following requirements from 2 CFR 200.320
(a)(1)(iv):
(A) Qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most recent
audit;
(B) Annual internal institutional risk assessment to identify, mitigate, and manage financials risks;
and,
(C) For public institutions, a higher threshold is consistent with State law.
The increased threshold is valid until any factor that was relied on in the establishment and rationale of
the threshold changes.
Condition
In October 2022, the University received approval from the U.S. Department of Health and Human
Services (DHHS) to raise its micro-purchase threshold to $75,000 having self-certified that it met the
criteria of 2 CFR 200.320 (a)(1)(iv). In January 2024, in connection with the issuance of the September
30, 2023 financial statements, UAH reported a material weakness in internal control over financial
reporting. This resulted in the University no longer being a low-risk auditee for the September 30, 2024
Uniform Guidance audit and thus no longer meeting the criteria that was relied upon by DHHS when
providing the approval to raise the University’s micro-purchase threshold to $75,000. As a result, the
increased threshold was no longer valid, and the University did not lower its micro-purchase threshold to
$10,000 in January 2024 when the material weakness was identified.
The University of Alabama in Huntsville
Schedule of Findings and Questioned Costs
Year Ended September 30, 2024
17
Cause
Management’s process did not allow for communication of the change in auditee status to the parties
impacted by the change.
Effect
Certain purchases made under Federal grants and contracts between $10,000 and $74,999 from
February 1, 2024 through September 30, 2024 lacked sufficient documentation to support the
justification and rationale for the selection of the specific vendor (e.g., there was no sole source form or
other documentation where only one vendor was used).
Questioned Costs
None.
Recommendation
We recommend that the University design and implement a control whereby the financial reporting
department communicates the results of the annual financial statement audit to those responsible for the
Uniform Guidance compliance audit, including Procurement Services, as soon as the financial statement
audit is complete, so that the auditee status can be evaluated and any changes to Procurement Services
policies and procedures can be made and applied in a timely manner. Management’s View and Corrective Action Plan
Management’s response is reported in “Management’s View and Corrective Action Plan” on the following
page.