FAC Explorer

Audit 379429

FY End
2024-12-31
Total Expended
$2.51M
Findings
1
Programs
1
Organization: Liberate Medical, Inc. (KY)
Year: 2024 Accepted: 2026-01-06
Auditor: LBMC PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1167912 2024-001 Material Weakness Yes M

Programs

ALN Program Spent Major Findings
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $2.51M Yes 1

Contacts

Name Title Type
DT45VLGAMDZ4 Angus McLachlan Auditee
5024033964 Jim Stevison Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Liberate Medical, Inc. and Subsidiary (collectively, the Company) under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with 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).
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 penditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
There were no federal awards expended in the form of non-cash assistance and there were no loan guarantees outstanding at year end.

Finding Details

Finding 2024-001
U.S. Department of Defense 2024‐001 Military Medical Research and Development‐‐Assistance Listing No. 12.420; Grant No. W81‐ XWH2211123; Grant period: Year Ended December 31, 2024 Criteria and Condition: All subawards of these Federal funds should be subjected to proper subrecipient monitoring activities, including review of periodic award reports (financial, performance and technical) and subrecipient audit reports for compliance with federal statutes, regulations and the terms and conditions of the subaward. For the year ended December 31, 2024, there were instances where the Company did not perform all of the subrecipient financial monitoring activities. Context: There were 5 subawards of these Federal funds, which amounted to $134,695 of Federal expenditures for the year ended December 31, 2024 out of $2,510,869 of total Federal expenditures under this grant agreement. Cause: The lack of understanding of the impact of a subaward and all the related financial subrecipient monitoring requirements that accompany this type of arrangement. Effect: $134,695 of costs are likely questioned as a result of all aspects of subrecipient monitoring not having taken place throughout 2024. Recommendation: Appropriate written subrecipient monitoring policies and procedures be developed and implemented, including a schedule for various financial reviews to document that subrecipients are complying with the Federal regulations and with the terms and conditions of the subaward. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and is working to correct this matter as documented in the Company’s correction action plan. A Single Audit was not required in the prior year, therefore, there were no prior audit findings.