Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our testing of allowable costs and special tests and provisions, access to classified contracts was restricted. Therefore, we were unable to attain contracts that are deemed to be classified. Consequently, the audit evidence was insufficient to support whether the Company has incurred expenses that are allowable in pursuant with the terms and conditions of federal awards. Further, there was no accessibility to the classified federal award contracts for the determination of whether other special tests and provisions are applicable to these classified contracts. Under the testing for allowable costs, there were approximately 10% of expenses related to classified contracts within the total population. Further, the total classified contract expense amount is nearly two times program materiality. For special tests and provisions, we were unable to attain classified contracts to examine the required level of security clearance for personnel assigned to the projects. Out of the total of 637 federal awards, the Company identified 96 contracts with the requirement of security clearance. Of these 96 contracts, 35 contracts (approximately 36%) were classified. Aside from the requirement for security clearance, we were unable to review other special provisions applicable to classified contracts given restricted access to classified contracts. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized auditors who have been granted clearance by relevant regulatory authorities. Effect: Audit conclusion cannot be reached for the Company’s compliance with allowable costs and special tests and provisions. Questioned Cost: Unknown Recommendation: The Company is advised to engage with the external regulators to seek clarification on the scope limitation and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.