FAC Explorer

Audit 364502

FY End
2023-12-31
Total Expended
$788,329
Findings
4
Programs
2
Organization: Basic Health International (PA)
Year: 2023 Accepted: 2025-08-19
Auditor: Sisterson & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573854 2023-001 Material Weakness - P
573855 2023-002 - - L
1150296 2023-001 Material Weakness - P
1150297 2023-002 - - L

Programs

ALN Program Spent Major Findings
93.393 Cancer Cause and Prevention Research $350,633 Yes 0
93.394 Cancer Detection and Diagnosis Research $183,203 Yes 0

Contacts

Name Title Type
WAZVEBBZL8L3 Eveline Mumenthaler Auditee
4127427627 Drew Zerick Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation The accompanying schedule of expenditures of federal awards includes the federal award activity of Basic Health International, Inc. for the year ended December 31, 2023. 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, Costs Principles, and Audit Requirements of Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Cost principles Expenditures reported on the schedule of expenditures of federal awards 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. De Minimis Rate Used: Both Rate Explanation: Basic Health International, Inc. elected to use the 10% de minimis indirect cost rate, as permitted under the Uniform Guidance, to provide for indirect cost reimbursement on federal awards, unless otherwise defined in the applicable agreement. Basis of presentation The accompanying schedule of expenditures of federal awards includes the federal award activity of Basic Health International, Inc. for the year ended December 31, 2023. 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, Costs Principles, and Audit Requirements of Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Cost principles Expenditures reported on the schedule of expenditures of federal awards 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. Indirect costs Basic Health International, Inc. elected to use the 10% de minimis indirect cost rate, as permitted under the Uniform Guidance, to provide for indirect cost reimbursement on federal awards, unless otherwise defined in the applicable agreement.

Finding Details

Finding 2023-001
2023-001 – Material Weakness in internal control Condition: As part of the financial statement audit, a material weakness in internal control was reported related to untimely invoicing under contracts and performance and review of monthly bank and credit card reconciliations, and lack of controls over cash receipts and cash disbursements. Criteria: Internal controls should be in place that provide reasonable assurance that invoicing will occur timely and proper approvals, review, and controls are in place over bank and credit card reconciliations, cash receipts, and cash disbursements. Cause: There is a lack of procedures in place around these key accounting processes. Effect: A material misstatement in financial reporting could occur due to this deficiency. Recommendation: Processes and procedures should be implemented that ensure (1) timely invoicing under contracts, (2) proper completion and review of monthly bank and credit card reconciliations, and (3) proper controls related to processing, approval, and review of cash receipt and cash disbursement transactions. Views of Responsible Officials and Planned Corrective Actions: Basic Health International, Inc. agrees with the finding and has a plan in place to develop and implement procedures to correct the finding.
Finding 2023-002
2023-002 – Failure to timely file the audit, data collection form, and reporting package in accordance with 2 CFR section 200.512(a). Condition: Basic Health International, Inc. did not identify the need for a single audit for the year ended December 31, 2023 on a timely basis. Criteria: CFR section 200.512(a) requires Basic Health International, Inc. to submit its audit, data collection form, and reporting package to the Federal Audit Clearinghouse within 30 calendar days after receiving the auditor’s report, or nine months after the end of the audit period (whichever is earlier). Cause: Basic Health International, Inc. did not identify the need for a single audit for the year ended December 31, 2023 on a timely basis. Effect: Basic Health International, Inc. is not in compliance with the filing requirements of its federally funded programs. Recommendation: Develop processes and procedures to ensure that Basic Health International, Inc.’s audit, data collection form, and reporting package are submitted to the Federal Audit Clearinghouse within 30 calendar days after receiving the auditor’s report, or nine months after the end of the audit period (whichever is earlier) in accordance with 2 CFR section 200.512(a). Views of Responsible Officials and Planned Corrective Actions: Basic Health International, Inc. agrees with the finding and has a plan in place to develop and implement procedures to correct the finding.
Finding 2023-001
2023-001 – Material Weakness in internal control Condition: As part of the financial statement audit, a material weakness in internal control was reported related to untimely invoicing under contracts and performance and review of monthly bank and credit card reconciliations, and lack of controls over cash receipts and cash disbursements. Criteria: Internal controls should be in place that provide reasonable assurance that invoicing will occur timely and proper approvals, review, and controls are in place over bank and credit card reconciliations, cash receipts, and cash disbursements. Cause: There is a lack of procedures in place around these key accounting processes. Effect: A material misstatement in financial reporting could occur due to this deficiency. Recommendation: Processes and procedures should be implemented that ensure (1) timely invoicing under contracts, (2) proper completion and review of monthly bank and credit card reconciliations, and (3) proper controls related to processing, approval, and review of cash receipt and cash disbursement transactions. Views of Responsible Officials and Planned Corrective Actions: Basic Health International, Inc. agrees with the finding and has a plan in place to develop and implement procedures to correct the finding.
Finding 2023-002
2023-002 – Failure to timely file the audit, data collection form, and reporting package in accordance with 2 CFR section 200.512(a). Condition: Basic Health International, Inc. did not identify the need for a single audit for the year ended December 31, 2023 on a timely basis. Criteria: CFR section 200.512(a) requires Basic Health International, Inc. to submit its audit, data collection form, and reporting package to the Federal Audit Clearinghouse within 30 calendar days after receiving the auditor’s report, or nine months after the end of the audit period (whichever is earlier). Cause: Basic Health International, Inc. did not identify the need for a single audit for the year ended December 31, 2023 on a timely basis. Effect: Basic Health International, Inc. is not in compliance with the filing requirements of its federally funded programs. Recommendation: Develop processes and procedures to ensure that Basic Health International, Inc.’s audit, data collection form, and reporting package are submitted to the Federal Audit Clearinghouse within 30 calendar days after receiving the auditor’s report, or nine months after the end of the audit period (whichever is earlier) in accordance with 2 CFR section 200.512(a). Views of Responsible Officials and Planned Corrective Actions: Basic Health International, Inc. agrees with the finding and has a plan in place to develop and implement procedures to correct the finding.