Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. See corrective action plan.
Finding 2024-003: SEFA Preparation— Subrecipient vs. Subcontractor Determinations Federal Program(s): • Adv HIV & AIDS Epidemic Control (AHEC) Activity - ALN 98.U01 • ASAP & ASAP II – ALN 98.U02 • Zambia Local – ALN 98.U03 Criteria: The auditee must prepare the financial statements, including the schedule of expenditures of federal awards (SEFA) in accordance with 2 CFR 200.510 (2 CFR 200.508 (b)). The SEFA must include the total amount provided to subrecipients from each Federal program (2 CFR 200.510 (b)(4)). Condition: Subcontractor amounts were improperly included in the Amounts Provided to Subrecipients column on the SEFA. Cause: Ineffective design and implementation of internal controls around SEFA preparation. Effect: There were approximately $2.6 million in subcontractor expenses incurred by IntraHealth that were improperly included in the Amounts to Subrecipients column on the SEFA as they did not represent payments to subrecipients. Questioned costs: None Context: Management made improper subrecipient vs. subcontractor determinations, resulting in inaccurate SEFA preparation. This resulted in $2.6 million being removed from the Amounts Provided to Subrecipients column in the original SEFA provided to the auditors by management. Repeat finding: No Recommendation: We recommend that management review internal controls in place around the SEFA preparation and ensure an independent review is being performed around amounts reported as Amounts to Subrecipients against 2 CFR 200.331, Subrecipient and subcontractor determinations. Views of responsible officials: Management agrees with the finding. 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 2024-001 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.