FAC Explorer

Audit 413535

FY End
2025-12-31
Total Expended
$2.69M
Findings
1
Programs
3
Organization: Texas Heart Institute (TX)
Year: 2025 Accepted: 2026-09-30
Auditor: BLAZEK & VETTERLING

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1238616 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $141,572 Yes 0
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $56,148 Yes 0
93.837 CARDIOVASCULAR DISEASES RESEARCH $4,025 Yes 0

Contacts

Name Title Type
ET52YPHJ2JR3 Darin Maxwell Auditee
8323553653 Laurie Hill Gutierrez Auditor
No contacts on file

Notes to SEFA

Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include both costs that are capitalized and costs that are recognized as expenses in THI’s financial statements in conformity with generally accepted accounting principles. THI does not utilize the 10% de minimus indirect rate, but uses a rate equal to or less than the indirect rate approved by the U. S. Department of Health and Human Services. Because the schedule presents only a selected portion of the operations of THI, it is not intended to and does not present the financial position, changes in net assets, or cash flows of THI.
Effective August 1, 2025, certain federal research awards were transferred to Baylor College of Medicine. Where revised Notices of Award were issued, the revised award periods are reflected in the schedule. For awards for which revised award documentation had not yet been issued, award periods reflect the most recent executed award documentation.

Finding Details

Finding 2025-002
Finding #2025-002 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Direct Funding, Assistance Listing #: 93.837 – Cardiovascular Diseases Research, Contract Number: 5R01HL153538-04, Contract Year: 07/01/23 – 06/30/25. Criteria: Management is responsible for establishing and maintaining effective internal controls over the preparation of the Schedule of Expenditures of Federal Awards (SEFA). Condition and context: In testing 40 transactions for allowable costs, we identified an allowable program expenditure of $33,459 that was for goods and services received in fiscal year 2024. It was billed to the program in fiscal year 2025 and is reported on the 2025 SEFA. 2024 federal expenditures reported in the SEFA were understated by $33,459. Cause: THI’s controls for reconciling project expenditures to information used in preparing the SEFA were not operating effectively to ensure all allowable grant expenditures incurred during the reporting period were included in the project statements and ultimately reported in the SEFA. Effect: The 2024 SEFA was understated for the program by $33,459. Recommendation: Reemphasize the need for year-end grant reporting procedures sufficient to ensure all allowable federal expenditures incurred during the reporting period are identified and reported completely and accurately. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.