Audit 413589

Finding 2025-001: Procurement – Significant Deficiency Assistance Listing Number: 12.632 Criteria: 2 CFR Section 200.318 requires that the non-federal entity must have and use documented procurement procedures, consistent with state, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a federal award or subaward. The non-federal entity’s documented procurement procedures must conform to the procurement standard identified in §§ 200.317 through 200.327 and must be adhered to. Condition: During testing of the Institute’s controls over procurement and compliance with procurement requirements, we identified instances where the Institute did not have all the needed documentation around the procurement process. Cause: The Institute did not have formal written procurement policies and procedures during the year to ensure compliance with applicable Federal procurement requirements. Effect: The Institute was not fully compliant with the procurement requirements of the Uniform Guidance. Questioned costs: None Repeat Finding: No. Recommendation: We recommend the Institute review its current processes and controls over procurement to ensure all required documentation is retained and available and implement a formal written procurement policy. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Finding 2025-002: Reporting – Significant Deficiency Assistance Listing Number: 12.632 Criteria: 2 CFR Section 200.328 requires that the non-federal entity submit financial reports as required by the Federal award. Condition: During testing of the Institute’s controls over reporting and compliance with reporting requirements, we identified instances where the Institute did not submit all the required financial reports. Cause: Controls and processes were not effectively designed to ensure the timely submission of required reports. Effect: The Institute was not fully compliant with the reporting requirements of the Uniform Guidance. Questioned costs: None Repeat Finding: No. Recommendation: We recommend the Institute review its current processes and controls over reporting to ensure all required reports are submitted timely. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.