Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
Finding Reference Number 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Criteria: In accordance with 2 CFR 200.508 (d), the auditee must provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required for the schedule of expenditures of federal awards. Condition/Context: During our compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted; therefore, we were unable to review certain information related to classified contracts. Respectively, we were unable to examine within the original contract with regards to: Period of performance (5 of 50 selections) – unable to confirm the authorized project period Procurement (micro purchasing) (2 of 40 selections) – unable to review applicable requirement relating to consent to subcontract Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Cause: The Company acknowledges that classified contracts are subject to confidentiality requirements as mandated by external regulators. Access to classified information within these contracts are strictly limited to authorized individuals who have been granted clearance by relevant regulatory authorities. Effect: Lack of sufficient documentation or support for expenditures and transactions could cause the expenditures to be denied by the grantor. Questioned Cost: Unable to be determined, as documentation was not available for these selections Recommendation: The Company is advised to engage with the external regulators to seek clarification on the access restrictions and explore any possible flexibility or alternative approaches. Views of responsible officials: See Corrective Action Plan.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-003 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness in Internal Controls over Compliance)—All Awards) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • CRA program federal expenditures (CFDA #14.228) were understated by $23,893. • ACL Independent Living State Grants federal expenditures (CFDA #93.369) were overstated by $21,856 due to errors in SEFA preparation. • Several presentational errors including incorrect identifying numbers listed, incorrect award terms listed, and incorrect CFDA #’s listed for multiple awards. Cause: Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs: None Recommendation: Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the audit findings and the material weakness related to the preparation of the Schedule of Expenditures of Federal Awards (SEFA). The errors identified stemmed from insufficient internal controls over the preparation and review process. Additionally, there were inconsistencies in how the SEFA was prepared in previous years, compounded by a quick turnover to a new controller at year-end, which disrupted continuity and contributed to the lack of clear guidance in the SEFA preparation process. To address these challenges, management has implemented immediate corrective actions, including enhanced training for all staff involved in the SEFA preparation to ensure a thorough understanding of federal reporting standards and the required minimum elements. Furthermore, all SEFA components will be reconciled with original source documents, such as grant awards and trial balances, prior to submission for audit. Management believes that, with the new internal control measures and training in place, these errors are not expected to occur in future years.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
Condition: During our audit, we noted that expenditures totaling $101,308 for FAL 93.354, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, were originally incorrectly listed on the schedule of expenditures of federal awards (SEFA) for FAL 93.069, Public Health Emergency Preparedness. Criteria: 2 CFR 200.508(b), Auditee Responsibilities, requires the auditee to prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with § 200.510. Cause and Effect: The cause is that lack of sufficient research in obtaining the appropriate federal assistance listing. The effect is the reporting of expenditures to an incorrect federal assistance listing. Recommendation: We recommend that Yavapai County develop internal controls that ensure the reporting of federal expenditures on the SEFA to the proper federal assistance listing number. Management’s Response: Yavapai County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.