Audit 366670

FY End
2024-12-31
Total Expended
$31.13M
Findings
10
Programs
13
Year: 2024 Accepted: 2025-09-18

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1153423 2024-002 Material Weakness Yes L
1153424 2024-002 Material Weakness Yes L
1153425 2024-002 Material Weakness Yes L
1153426 2024-002 Material Weakness Yes L
1153427 2024-002 Material Weakness Yes L
1153428 2024-002 Material Weakness Yes L
1153429 2024-002 Material Weakness Yes L
1153430 2024-002 Material Weakness Yes L
1153431 2024-002 Material Weakness Yes L
1153432 2024-002 Material Weakness Yes L

Contacts

Name Title Type
CKZPMBTVTPL6 Veronica Ali Auditee
3016083040 Tricia Katebini Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of the Foundation under programs of the United States Government for the year ended December 31, 2024. Information on the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule presents only a selected portion of the operations of the Foundation; accordingly, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Foundation.
Expenditures 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. The Foundation has elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The following is a reconciliation for Federal grant revenue to unrestricted grants revenue included in the Statement of Activities and Change in Net Assets: Federal Grants $ 31,125,942 Corporate, Foundation Non-Federal Government Grants 2,995,537 TOTAL GRANTS REVENUE WITHOUT DONOR RESTRICTIONS $ 34,121,479

Finding Details

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.