Audit 409589

FY End
2025-12-31
Total Expended
$3.24M
Findings
1
Programs
1
Year: 2025 Accepted: 2026-08-21
Auditor: BLUE & CO LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1227571 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
11.620 SCIENCE, TECHNOLOGY, BUSINESS AND/OR EDUCATION OUTREACH $3.24M Yes 1

Contacts

Name Title Type
K6VFM5EK87A6 Cody Embry, CPA Auditee
2029601789 Rick Shields, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule, SEFA) includes the federal award activity of the Association of University Technology Managers, Inc. (the Association) under programs of the federal government for the year ended December 31, 2025. 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 the Association, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Association.
Expenditures reported on the Schedule are reported on the basis of accounting following the cost principles contained in the Uniform Guidance, wherein expenditures are charged to grants as payments are made for allowable activities. Below is a reconciliation of amounts reflected on the SEFA to amounts reflected on the statement of functional expenses. Paid in prior Paid in current year for year for Federal Lab Per SEFA current year future period Consortium Salaries and wages $ 1,448,983 $ 0 $ 0 $ 1,448,983 Taxes and benefits 405,715 0 0 405,715 Professional fees 131,656 0 (11,500) 120,156 Professional development 14,864 0 (1,040) 13,824 Technology 504,084 624,902 (140,438) 988,548 Travel 80,893 0 (5,344) 75,549 Venue expenses and catering 30,352 127,980 0 158,332 Attendee activities and materials 28,982 2,495 0 31,477 Site preparation 157,543 52,119 (36,133) 173,529 Keynotes, speakers, and instructors 8,277 0 0 8,277 Meeting logistics 10,537 0 0 10,537 Marketing and promotion 34,196 0 0 34,196 Office expense 29,574 2,691 0 32,265 2,885,656 $ 810,187 $ (194,455) $ 3,501,388 Indirect expenses at 15% 432,848 Program income (76,498) Total expenditures per SEFA $ 3,242,006
The Association has elected to use the de minimis indirect cost rate of 15% allowed under the Uniform Guidance.
The federal financial assistance amounts received are subject to audit and adjustment. If any expenditures are disallowed by the applicable cognizant agency as a result of such an audit, any claim for reimbursement to the cognizant agencies could become a liability of the Association. In the opinion of management, all federal expenditures are in compliance with the terms of the agreements and applicable federal laws and regulations.

Finding Details

2025-001: Material weakness related to consolidation of affiliate Criteria – Management of the Organization is responsible for maintaining effective internal controls over financial reporting, including proper reporting of entities for which the entity has a controlling financial interest, to ensure completeness of the financial statements in accordance with generally accepted accounting principles. Condition - The Association of University Technology Managers, Inc. (the Association) has a controlling financial interest in AUTM Foundation, Inc. (the Foundation) through its status as the only corporate member of the Foundation and its authority to select all board members of the Foundation. Given these circumstances, pursuant to Accounting Standards Codification 958-810-25-2, the Organization should consolidate the financials of the Foundation in its financial statements. Context - Historically the Association has reported its financial statements as a standalone entity with amounts due from the Foundation reflected as receivable from related party. Cause - The bylaws of the Foundation state that no board members of the Association may serve as board members of the Foundation. This created a misunderstanding on the part of the Association that the Foundation is a separate entity and should not be consolidated in the Association’s financials. Effect - In previous years, the financial statements of the Organization did not include the assets, liabilities, net assets, revenues, and expenses of the Foundation that were not eliminated in consolidation. Recommendation - Finance management of the Organization should maintain an awareness of all affiliated entities to determine whether any of those entities should be consolidated in the Organization’s financial statements. Views of Responsible Officials - Management concurs with the recommendation and the 2025 financials reflect the appropriate correction. At this time, the Organization does not have any other affiliates, but the Organization’s finance team is now fully apprised of the nuances of the above referenced accounting standard and it will be thoroughly considered in the future if the Organization becomes affiliated with any other entities.