FAC Explorer

Audit 364004

FY End
2024-12-31
Total Expended
$1.98M
Findings
6
Programs
6
Organization: Academyhealth (DC)
Year: 2024 Accepted: 2025-08-10
Auditor: Gelman Rosenberg & Freedman

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573172 2024-001 Significant Deficiency Yes B
573173 2024-002 Significant Deficiency - C
573174 2024-003 Significant Deficiency - P
1149614 2024-001 Significant Deficiency Yes B
1149615 2024-002 Significant Deficiency - C
1149616 2024-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.110 Maternal and Child Health Federal Consolidated Programs $1.06M Yes 3
93.928 Special Projects of National Significance $361,559 - 0
93.268 Immunization Cooperative Agreements $170,136 - 0
93.226 Research on Healthcare Costs, Quality and Outcomes $96,293 - 0
93.279 Drug Use and Addiction Research Programs $41,865 - 0
93.307 Minority Health and Health Disparities Research $23,042 - 0

Contacts

Name Title Type
ERAEDE6KENE6 Holly Hueston Auditee
2022926711 Jennifer McCahill Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. AcademyHealth has elected not to use the de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal grant activity of AcademyHealth under programs of the Federal Government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of AcademyHealth, it is not intended to and does not present the financial position, change in net assets or cash flows of AcademyHealth.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. AcademyHealth has elected not to use the de minimis indirect cost rate as allowed under Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. AcademyHealth has elected not to use the de minimis indirect cost rate as allowed under Uniform Guidance.
Title: Note 3. Reconciliation of Revenue Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. AcademyHealth has elected not to use the de minimis indirect cost rate as allowed under Uniform Guidance. The table below summarizes a reconciliation between the revenue reported on the financial statements for the year ended December 31, 2024 and the Federal grant expenditures reported on the schedule of expenditures of Federal awards for the year ended December 31, 2024: Federal grants and contracts per the financial statements $ 6,180,411 Less: Fixed price Federal contracts not subject to 2 CFR 200 requirements 1,332,921 Less: Sponsorships not subject to 2 CFR 200 requirements 530,571 Less: Grants from Federally funded non-profits not subject to 2 CFR 200 requirements 2,334,816 FEDERAL EXPENSES AS REPORTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS $ 1,982,103

Finding Details

Finding 2024-001
Finding 2024-001 Negotiated Indirect Cost Rate Agreement Federal Agency: Department of Health and Human Services; Health Resources and Services Administration. Federal Program: Maternal and Child Health Federal Consolidated Programs. Assistance Listing Number: ALN 93.110. Pass-through Entity: Not applicable. Award Identification Number and Year: UJ6MC45789-02-02 and 2024. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As required by the Uniform Guidance Appendix IV Part 200, item C(2)(c), organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year. Condition: During 2023, it was noted that AcademyHealth had a Health and Human Services approved provisional rate through December 31, 2022 and continued to use the provisional rate through 2023 and part of 2024. AcademyHealth did not submit a new indirect cost proposal to the cognizant agency within the required timeframe. Cause: Internal controls were not in place to ensure timely submission of the indirect cost proposals. Effect or Potential Effect: Failure to submit a new indirect cost proposal within six months after the close of fiscal year results in noncompliance with the Uniform Guidance Appendix IV Part 200, item C(2)(c). Questioned Costs: Questioned costs were not identified. Context: A new indirect cost rate proposal to obtain final rates for 2019 through 2022 and requesting provisional rates for 2023 through 2025 was not submitted until July 25, 2024 and has been subsequently negotiated and approved in March 2025. Identification as a Repeat Finding, if Applicable: Continued Finding 2023-003. Recommendation: We recommend that AcademyHealth review its internal controls surrounding indirect costs proposals and develop an effective reporting system to allow AcademyHealth to monitor and ensure the proposals are prepared and submitted within the deadline.
Finding 2024-002
Finding 2024-002 Inadequate Documentation to Support Federal Drawdowns Federal Agency: Department of Health and Human Services; Health Resources and Services Administration. Federal Program: Maternal and Child Health Federal Consolidated Programs. Assistance Listing Number: ALN 93.110. Pass-through Entity: Not applicable. Award Identification Number and Year: UJ6MC45789-02-02 and 2024. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 22 CFR 226 Subpart C Section 21 "Standards for Financial Management Systems" requires recipients of Federal funds to establish financial management systems that will ensure effective control over and accountability for all funds, property and other assets. Condition: During our audit, we noted instances whereby the basis for the funds drawndown from the PMS system were unsupported. Cause: Internal controls were not in place to ensure an accurate basis for drawdowns. Effect or Potential Effect: The failure to maintain supporting documentation for draw requests could result in drawing funds in excess of actual expenses incurred. Questioned Costs: Questioned costs were not identified. Context: Out of the two drawdowns for the major program during 2024, we noted that the amount for one of the draws was not supported with a P&L to substantiate the costs were expended against the program. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend AcademyHealth enhance its internal controls on cash management and that drawdowns are based on actual expenditures incurred that can be supported with a P&L for the Federal program.
Finding 2024-003
Finding 2024-003: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Department of Health and Human Services; Health Resources and Services Administration. Federal Program: Maternal and Child Health Federal Consolidated Programs. Assistance Listing Number: ALN 93.110 Pass-through Entity: Not applicable. Award Identification Number and Year: UJ6MC45789-02-02 and 2024. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Condition: AcademyHealth experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized and included in the Schedule of Federal Awards. Cause: Internal controls were not in place to ensure an accurate preparation of the SEFA. Context: The Schedule of Expenditures of Federal Awards (SEFA) was not accurately completed at year-end and we received multiple versions of the SEFA during our audit process. Effect or Potential Effect: The Schedule of Expenditures of Federal Awards prepared at year-end had instances of budgeted expenditures and missing Federal grants. Questioned Costs: There were no questioned costs identified. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend AcademyHealth enhance it's controls over preparation of the SEFA and it should be reviewed and approved by an individual in a supervisory capacity. The SEFA should be prepared in accordance with the regulations under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Finding 2024-001
Finding 2024-001 Negotiated Indirect Cost Rate Agreement Federal Agency: Department of Health and Human Services; Health Resources and Services Administration. Federal Program: Maternal and Child Health Federal Consolidated Programs. Assistance Listing Number: ALN 93.110. Pass-through Entity: Not applicable. Award Identification Number and Year: UJ6MC45789-02-02 and 2024. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As required by the Uniform Guidance Appendix IV Part 200, item C(2)(c), organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year. Condition: During 2023, it was noted that AcademyHealth had a Health and Human Services approved provisional rate through December 31, 2022 and continued to use the provisional rate through 2023 and part of 2024. AcademyHealth did not submit a new indirect cost proposal to the cognizant agency within the required timeframe. Cause: Internal controls were not in place to ensure timely submission of the indirect cost proposals. Effect or Potential Effect: Failure to submit a new indirect cost proposal within six months after the close of fiscal year results in noncompliance with the Uniform Guidance Appendix IV Part 200, item C(2)(c). Questioned Costs: Questioned costs were not identified. Context: A new indirect cost rate proposal to obtain final rates for 2019 through 2022 and requesting provisional rates for 2023 through 2025 was not submitted until July 25, 2024 and has been subsequently negotiated and approved in March 2025. Identification as a Repeat Finding, if Applicable: Continued Finding 2023-003. Recommendation: We recommend that AcademyHealth review its internal controls surrounding indirect costs proposals and develop an effective reporting system to allow AcademyHealth to monitor and ensure the proposals are prepared and submitted within the deadline.
Finding 2024-002
Finding 2024-002 Inadequate Documentation to Support Federal Drawdowns Federal Agency: Department of Health and Human Services; Health Resources and Services Administration. Federal Program: Maternal and Child Health Federal Consolidated Programs. Assistance Listing Number: ALN 93.110. Pass-through Entity: Not applicable. Award Identification Number and Year: UJ6MC45789-02-02 and 2024. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 22 CFR 226 Subpart C Section 21 "Standards for Financial Management Systems" requires recipients of Federal funds to establish financial management systems that will ensure effective control over and accountability for all funds, property and other assets. Condition: During our audit, we noted instances whereby the basis for the funds drawndown from the PMS system were unsupported. Cause: Internal controls were not in place to ensure an accurate basis for drawdowns. Effect or Potential Effect: The failure to maintain supporting documentation for draw requests could result in drawing funds in excess of actual expenses incurred. Questioned Costs: Questioned costs were not identified. Context: Out of the two drawdowns for the major program during 2024, we noted that the amount for one of the draws was not supported with a P&L to substantiate the costs were expended against the program. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend AcademyHealth enhance its internal controls on cash management and that drawdowns are based on actual expenditures incurred that can be supported with a P&L for the Federal program.
Finding 2024-003
Finding 2024-003: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Department of Health and Human Services; Health Resources and Services Administration. Federal Program: Maternal and Child Health Federal Consolidated Programs. Assistance Listing Number: ALN 93.110 Pass-through Entity: Not applicable. Award Identification Number and Year: UJ6MC45789-02-02 and 2024. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Condition: AcademyHealth experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized and included in the Schedule of Federal Awards. Cause: Internal controls were not in place to ensure an accurate preparation of the SEFA. Context: The Schedule of Expenditures of Federal Awards (SEFA) was not accurately completed at year-end and we received multiple versions of the SEFA during our audit process. Effect or Potential Effect: The Schedule of Expenditures of Federal Awards prepared at year-end had instances of budgeted expenditures and missing Federal grants. Questioned Costs: There were no questioned costs identified. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend AcademyHealth enhance it's controls over preparation of the SEFA and it should be reviewed and approved by an individual in a supervisory capacity. The SEFA should be prepared in accordance with the regulations under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).