Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-006 – Reporting – SEFA Preparation Information of the federal program:Federal Grantor: United States Department of Health and Human Services Assistance Listing No.: 21.027, Coronavirus State and Local Fiscal Recovery Fund Criteria or specific requirement (including statutory, regulatory or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.” Condition: Endeavor did not provide a complete and accurate listing of all federal awards in the SEFA. Cause:Endeavor did not include all funds expended under the Coronavirus State and Local Fiscal Recovery Fund on the SEFA. Effect or potential effect:The SEFA prepared by Endeavor in fiscal year 2023 was misstated but was subsequently corrected. Themisstated SEFA resulted in the improper identification of federal award major programs, and therefore resulted in a restatement of a previously issued Uniform Guidance report. Questioned costs:None Context:Expenditures for ALN 21.027 were understated by $1,399,999, which resulted in the program being identified as a major program upon inclusion of the costs. Identification as a repeat finding, if applicable:This finding is not a repeat finding. Recommendation:Endeavor should review its internal controls over the process of accumulating and reporting expenditures of federal awards to ensure a completed and accurate SEFA presentation. Views of responsible officials:The grant was received and expended during a period that overlapped fiscal years, and internal miscommunication led to its initial exclusion from the SEFA submitted for audit. Management will enhance the SEFA preparation process by revising its procedures and adding additional controls to monitor for completeness of the data. This will include comparisons to the prior year programs, enhancing the Company’s grant tracking process, and review of the SEFA with key stakeholders. Upon identification of the omission, management reviewed the grant activity and has taken corrective action to ensure proper inclusion in future SEFA reports.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-006 – Reporting – SEFA Preparation Information of the federal program:Federal Grantor: United States Department of Health and Human Services Assistance Listing No.: 21.027, Coronavirus State and Local Fiscal Recovery Fund Criteria or specific requirement (including statutory, regulatory or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.” Condition: Endeavor did not provide a complete and accurate listing of all federal awards in the SEFA. Cause:Endeavor did not include all funds expended under the Coronavirus State and Local Fiscal Recovery Fund on the SEFA. Effect or potential effect:The SEFA prepared by Endeavor in fiscal year 2023 was misstated but was subsequently corrected. Themisstated SEFA resulted in the improper identification of federal award major programs, and therefore resulted in a restatement of a previously issued Uniform Guidance report. Questioned costs:None Context:Expenditures for ALN 21.027 were understated by $1,399,999, which resulted in the program being identified as a major program upon inclusion of the costs. Identification as a repeat finding, if applicable:This finding is not a repeat finding. Recommendation:Endeavor should review its internal controls over the process of accumulating and reporting expenditures of federal awards to ensure a completed and accurate SEFA presentation. Views of responsible officials:The grant was received and expended during a period that overlapped fiscal years, and internal miscommunication led to its initial exclusion from the SEFA submitted for audit. Management will enhance the SEFA preparation process by revising its procedures and adding additional controls to monitor for completeness of the data. This will include comparisons to the prior year programs, enhancing the Company’s grant tracking process, and review of the SEFA with key stakeholders. Upon identification of the omission, management reviewed the grant activity and has taken corrective action to ensure proper inclusion in future SEFA reports.
Preparation of Schedule of Expenditures of Federal Awards Federal Agency and Pass-through Entity: U.S. Environmental Protection Agency – Georgia Environmental Finance Authority Program Title/Cluster: Clean Water State Revolving Fund Cluster (CWSRF) Criteria: The Schedule of Expenditures of Federal Awards is a supplemental schedule to the financial statements required to be produced when the entity is subject to a single audit. The single audit requirement is triggered when the federal expenditures reported on the Schedule of Expenditures of Federal Awards exceed $750,000 or more within an entity’s fiscal year. Uniform Guidance 2 CFR §200.510(b) states “The auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with §200.502.” Condition: For the year ended December 31, 2023, the City kept records of all expenditures and receipts of funding from drawdown requests together with support of payments and deposits of funds related to all federal expenditures but did not present those expenditures correctly or completely on a Schedule of Expenditure of Federal Awards that met minimum requirements as established by Uniform Guidance 2 CFR §200.510(b). Effect: An accurate representation of total federal expenditures for the fiscal year is required to clearly identify federal expenditures for the audit period. The absence of a complete and accurate Schedule of Expenditures of Federal Awards for the audit period is noncompliant with the requirements set forth under Uniform Guidance 2 CFR §200.510(b) but does not constitute a significant deficiency or material weakness in internal control over compliance. Questioned Costs: None reported. Recommendation: The City should implement a policy requiring entry of any federal expenditures to the Schedule of Expenditures of Federal Awards as part of the drawdown or pay request processes when submitting expenditures to the Federal Agency or Pass-through Entity providing funding. The procedures should be followed consistently to ensure that federal funds are appropriately accounted for and clearly identifiable for the period in which they occurred. The City of Hartwell should refer to the compliance requirements of Title 2 U.S. Code of Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, and ensure the City meets the minimum Schedule of Expenditures of Federal Awards requirements as described in 2 CFR §200.510(b). Status: This finding is a repeat from the prior year’s issue, indicating that the corrective actions recommended in the previous audit were not fully implemented.
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
Material Weakness/Noncompliance – Other 2 CFR §200.510(b) states, in part, that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a. List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b. For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c. Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d. Include the total amount provided to subrecipients from each Federal program. e. For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f. Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. Subsequent to the original issuance of the 2023 audit report dated July 23, 2024, with the assistance of the pass-through entity, it was determined that the City omitted a federally funded program under the Highway Planning and Construction (ALN 20.205) – PID# 110419. The related expenditures of $2,378,835, were materially misstated by the exclusion from the City’s originally provided SEFA. The City failed to properly identify/communicate the federal designation of the project. Inaccurate completion of the SEFA could lead to inaccurate reporting of federal expenditures by the City and could jeopardize future federal funding. We recommend the City work with its departments to ensure all grant activity is properly included and a materially accurate Schedule is presented for audit. Furthermore, the City can reach out to various Ohio agencies to assist in determining Federal activity. Officials Response: See Corrective Action Plan.
Assistance Listing, Federal Agency, and Program Name 21.027 U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year MH 1251 2023 Pass through Entity The Ohio Department of Mental Health and Addiction Services Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502 basis for determining federal awards expended. Condition Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. Questioned Costs N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A Identification of How Questioned Costs Were Computed N/A Context ProMedica did not initially include the funds received through the Ohio Department of Mental Health and Addiction Services Coronavirus State and Local Fiscal Recovery funds on the SEFA. Cause and Effect ProMedica has a process in place to identify all potential sources of federal funding received during the year, however they received some incorrect information when going through these procedures, resulting in the SEFA being incomplete for the year ended December 31, 2023. Upon discovery of the error, ProMedica prepared a SEFA that included the Ohio Department of Mental Health and Addiction Services Coronavirus State and Local Fiscal Recovery funds. This lack of controls resulted in the reissuance of the 2023 single audit. Recommendation Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA. Views of Responsible Officials and Corrective Action Plan Management fully understands the importance of internal controls to ensure the schedule of federal expenditures is complete and accurate. The Grants Department will amend its current written processes regarding award establishment to include requiring documentation indicating an award is federal funds prior to establishing the project in Infor CloudSuite Financials & Supply Management (Accounting software). Additionally, the Grants Department will routinely audit the database the department utilizes to record awards to ensure the field to note federal awards is properly updated. Furthermore, the SEFA will be reviewed with documented sign-off by each member of the Grants Team prior to submission
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Finding 2023-002 – SEFA Reporting Federal Program: Medicaid Assistance Program HIV Emergency Relief Project Grants ALNs: 93.778 93.914 Federal Agency: U.S. Department of Health and Human Services Federal Award Years: July 1, 2022 – June 30, 2024 (93.778) March 1, 2022 – February 28, 2024 (93.914) Criteria: 2 CFR, Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F, §200.510(b) requires that auditees prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502. Condition Found, Including Perspective: The Schedule of Expenditures of Federal Awards (SEFA) prepared by management contained certain differences between federal expenditures reported and the years in which the federal awards were expended totaling $174,977 related to the Medicaid Assistance Program and $250,808 relate to the HIV Emergency Relief Project Grants. Possible Cause and Effect: While the System performs a review during the compilation of the SEFA, controls were not designed or implemented effectively to ensure that certain amounts were properly reflected on the SEFA in the period in which they were expended. Questioned Costs: None. Statistical Validity: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year: Yes – 2022-001 Recommendation We recommend that management implement appropriate controls and processes to ensure that expenditures are presented on the correct SEFA year. Views of Responsible Officials: Grady Memorial Hospital Corporation will implement a control and process to ensure that expenditures are properly reflected on the SEFA.
Finding 2023-003 – SEFA Reporting Federal Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Disaster Grants – Public Assistance ALNs: 21.027 97.036 Federal Agency: U.S. Department of Treasury U.S. Department of Homeland Security Federal Award Years: October 1, 2022 – September 20, 2024 (21.027) January 1, 2023 – December 31, 2023 (97.036) Criteria: 2 CFR, Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F, §200.510(b) requires that auditees prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the SEFA. Condition Found, Including Perspective: The System did not have adequate controls relating to the reporting of expenditures on the SEFA for the FEMA – Disaster Grants – Public Assistance and the Coronavirus State and Local Fiscal Recovery Funds programs. Specifically, the System did not have a control in place to ensure that all FEMA awards obligated during the year were recorded on the SEFA. Additionally, the System did not have a control in place to ensure that all incurred expenditures were properly accrued on the SEFA. As a result, the expenditures on the SEFA were understated as follows: • Expenditures of $2,038,362 for the FEMA – Disaster Grants – Public Assistance program were obligated and incurred as of December 31, 2023 but not recorded on the SEFA. • Expenditures of $2,790,267 for the Coronavirus State and Local Fiscal Recovery Funds program were incurred but not accrued for at year end. • Expenditures of $7,529,167 for the Coronavirus State and Local Fiscal Recovery Funds program which were incurred during 2023 and subsequently identified by management to be submitted for reimbursement under the federal award. Possible Cause and Effect: While the System performs a review during the compilation of the SEFA, controls were not designed or implemented effectively to ensure that amounts were properly recognized on the SEFA in the period in which they were expended. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the System from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs: None. Statistical Validity: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year: This is not a repeat finding. Recommendation We recommend that management implement appropriate controls and processes to ensure that the SEFA is complete and accurate. Views of Responsible Officials: Grady Memorial Hospital Corporation will implement a control and process to ensure that expenditures are properly reflected on the SEFA.
Federal Agency: U.S. Department of the TreasuryFederal Program Name: Emergency Rental Assistance Program (ERAP) Assistance Listing Number: 21.023 Federal Award Identification Number and Year: Various Pass-Through Agency: Pennsylvania Department of Health and Human Services Pass-Through Number(s): ERA-2101060067, ERA2-0391, ERAP2 Award Period: 1/1/2023 – 12/31/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific RequirementUniform guidance requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. A non-federal entity must maintain effective internal control over the federal award (2 CFR 200.303).Condition and ContextPolicies and controls in place regarding the completeness of the SEFA were not properly functioning. Within the supporting listing of expenses relating to ERAP expenditures, six transactions were identified as prior fiscal-year expenditures that were included in the unadjusted 2023 expenditure total. The County revised the 2023 SEFA to exclude the 2022 expenditures. Questioned Costs$33,301 Cause Controls ensuring that only federal expenditures incurred in the period from January 1, 2023 to December 31, 2023 were not operating as designed.Effect Potential inaccurate expenditure reporting in the SEFA. Repeat Finding No.Recommendation We recommend management should review the process of recording federal expenditures to determine expenditures are being included in the appropriate fiscal year.Views of Responsible Officials There is no disagreement with the audit finding and the County is in the process of implementing corrective procedures.
Federal Agency: U.S. Department of the Treasury Federal Program Name: American Rescue Plan Act / Coronavirus State Fiscal Recovery Fund (ARPA) Assistance Listing Number: 21.027Federal Award Identification Number and Year: Various Pass-Through Agency: Pennsylvania Department of Health and Human Services Pass-Through Number(s): 2022-CG-01-39297, SLFRP3241, C000084584, 4100095388 Award Period: 1/1/2023 – 12/31/23 Type of Finding: Significant Deficiency in Internal Control Over ComplianceCriteria or Specific Requirement Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. A non-federal entity must maintain effective internal control over the federal award (2 CFR 200.303).Condition and Context Policies and controls in place regarding the completeness of the SEFA were not properly functioning. Within the supporting listing of expenses relating to ARPA expenditures, multiple transactions were identified as 2022 fiscal year expenditures that were included in the in 2023 expenditure total. The County revised the 2023 SEFA to exclude the 2022 expenditures. Questioned Costs$381,675 Cause Controls ensuring that only federal expenditures incurred in the period from January 1, 2023 to December 31, 2023 were not operating as designed. Effect Potential inaccurate expenditure reporting in the SEFA. Repeat Finding No.Recommendation We recommend management should review the process of recording federal expenditures to determine expenditures are being included in the appropriate fiscal year.Views of Responsible Officials There is no disagreement with the audit finding and the County is in the process of implementing corrective procedures.
2023-004 SEFA REPORTING Federal Program Information: Federal Agency and Program Name Federal Assistance Listing Number National Endowment for the Humanities Promotion of the Humanities Federal/State Partnership Grant Number: SO-289836-23 45.129 Criteria: 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.510(b) states that “the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502.” Condition: The Council’s internal controls are not adequate to ensure the Schedule of Expenditures of Federal Awards (SEFA) accurately reports Federal assistance. The Council’s fiscal year 2023 SEFA for the Promotion of the Humanities Federal/State Partnership program included expenditures from other fiscal years. Questioned Costs: $4,015 Context: Total federal expenditures for the Promotion of the Humanities Federal/State Partnership program were $1,019,055 for the year ended October 31, 2023. Cause: The Council does not have adequate internal controls in place to ensure the accuracy of the SEFA. Effect: The Council is not reporting accurate financial information in its SEFA. Identification as a Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the Council implement controls over financial reporting, including the SEFA, to ensure accuracy of financial data. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
2023-004 SEFA REPORTING Federal Program Information: Federal Agency and Program Name Federal Assistance Listing Number National Endowment for the Humanities Promotion of the Humanities Federal/State Partnership Grant Number: SO-289836-23 45.129 Criteria: 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.510(b) states that “the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502.” Condition: The Council’s internal controls are not adequate to ensure the Schedule of Expenditures of Federal Awards (SEFA) accurately reports Federal assistance. The Council’s fiscal year 2023 SEFA for the Promotion of the Humanities Federal/State Partnership program included expenditures from other fiscal years. Questioned Costs: $4,015 Context: Total federal expenditures for the Promotion of the Humanities Federal/State Partnership program were $1,019,055 for the year ended October 31, 2023. Cause: The Council does not have adequate internal controls in place to ensure the accuracy of the SEFA. Effect: The Council is not reporting accurate financial information in its SEFA. Identification as a Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the Council implement controls over financial reporting, including the SEFA, to ensure accuracy of financial data. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.