FAC Explorer

Audit 399449

FY End
2025-12-31
Total Expended
$8.56M
Findings
1
Programs
4
Organization: APPLIED RESEARCH INSTITUTE, INC (IN)
Year: 2025 Accepted: 2026-04-22
Auditor: KATZ SAPPER & MILLER LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208467 2025-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
12.599 CONGRESSIONALLY DIRECTED ASSISTANCE $5.56M Yes 1
11.039 REGIONAL TECHNOLOGY AND INNOVATION HUBS $2.53M Yes 0
12.800 AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM $465,084 Yes 0
81.255 CLEAN ENERGY DEMONSTRATIONS $4,083 Yes 0

Contacts

Name Title Type
PHLNLR2KFJQ5 Leslie Wolfe Auditee
8127584338 Justin Hayes Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Applied Research Institute, Inc. and Affiliates (the Organization). The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Organization, it is not intended to and does not present the net assets, changes in net assets, or cash flows of the Organization. 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, or when not applicable the specific federal award agreement. Expenditures to Subrecipients: The amounts of expenditures to subrecipients represents the actual expenditures incurred by subrecipients and reimbursable by the Organization in 2025.
The Organization has elected to use the de minimis indirect cost rate as allowed and defined under the Uniform Guidance.

Finding Details

Finding 2025-001
2025-001 – Department of War – Congressional Directed Assistance – Assistance Listing No. 11.039 – Federal Award Number HQ00342520004 Material Noncompliance – L. Reporting – Federal Funding Accountability and Transparency Act (FFATA) Criteria: Appendix A. I(a)(2)(ii) to 2 CFR 170 indicates subaward information must be reported no later than one month following the month in which the subaward was issued. Condition and Context: We tested two subaward agreements required to be reported under FFATA. Our testing and the related results are summarized below. Management was aware the reporting requirements including the due date of the FFATA reporting. While attempting to complete the reporting management had questions which management was working to address. Management did not receive the necessary answers to its questions in a timely manner, in part due to the federal government shutdown, and decided to prioritize the accuracy of the reporting over timely completion. This decision resulted in untimely filing of all eight subawards management entered into during 2025. As of the date of our report, all eight filings due in 2025 have been completed. Cause and Effect: The finding was due to incomplete policies and procedures around FFATA reporting which resulted in untimely filing of FFATA reports. Recommendation: We recommend reviewing policies and procedures around FFATA reporting to ensure timely reporting. Views of Responsible Officials and Corrective Action: The Organization agrees with the recommendation and implemented corrective action in December 2025.