Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-006 – Reporting – SEFA Preparation Information of the federal program:Federal Grantor: United States Department of Health and Human Services Assistance Listing No.: 21.027, Coronavirus State and Local Fiscal Recovery Fund Criteria or specific requirement (including statutory, regulatory or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.” Condition: Endeavor did not provide a complete and accurate listing of all federal awards in the SEFA. Cause:Endeavor did not include all funds expended under the Coronavirus State and Local Fiscal Recovery Fund on the SEFA. Effect or potential effect:The SEFA prepared by Endeavor in fiscal year 2023 was misstated but was subsequently corrected. Themisstated SEFA resulted in the improper identification of federal award major programs, and therefore resulted in a restatement of a previously issued Uniform Guidance report. Questioned costs:None Context:Expenditures for ALN 21.027 were understated by $1,399,999, which resulted in the program being identified as a major program upon inclusion of the costs. Identification as a repeat finding, if applicable:This finding is not a repeat finding. Recommendation:Endeavor should review its internal controls over the process of accumulating and reporting expenditures of federal awards to ensure a completed and accurate SEFA presentation. Views of responsible officials:The grant was received and expended during a period that overlapped fiscal years, and internal miscommunication led to its initial exclusion from the SEFA submitted for audit. Management will enhance the SEFA preparation process by revising its procedures and adding additional controls to monitor for completeness of the data. This will include comparisons to the prior year programs, enhancing the Company’s grant tracking process, and review of the SEFA with key stakeholders. Upon identification of the omission, management reviewed the grant activity and has taken corrective action to ensure proper inclusion in future SEFA reports.
Finding 2023-001 – ReportingInformation of the federal program:Federal Grantor: Department of Defense (DOD)Assistance Listing No.: 12.420, Military Medical Research and DevelopmentPass-Through Grantor: Johns Hopkins UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.172, Human Genome ResearchPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.226, Research on Healthcare Costs, Quality and OutcomesPass-Through Grantor: The Regents of the University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.242, Mental Health Research GrantsPass-Through Grantor: Rutgers State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.307, Minority Health and Health Disparities ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.310, Trans-NIH Research SupportPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.350, National Center for Advancing Translational SciencesPass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.351, Research Infrastructure ProgramPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.361, Nursing ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.368, 21st Century Cures Act – Precision Medicine InitiativePass-Through Grantor: University of ChicagoFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.394, Cancer Detection and Diagnosis ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.395, Cancer Treatment ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.396, Cancer Biology ResearchPass-Through Grantor: Tulane University, Louisiana State UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.397, Cancer Centers Support GrantsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.667, Social Services Block GrantPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.837, Cardiovascular Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.838, Lung Diseases ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.847, Diabetes, Digestive, and Kidney Diseases Extramural ResearchPass-Through Grantors: Northwestern University, Duke University, University of Washington, The Regents of University of MichiganFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.853, Extramural Research Programs in the Neurosciences and Neurological DisordersPass-Through Grantor: Rush University Medical CenterFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.855, Allergy, Immunology and Transplantation ResearchPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.859, Biomedical Research and Research TrainingPass-Through Grantor: University of Wisconsin – MadisonFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.865, Child Health and Human Development Extramural ResearchPass-Through Grantors: Northwestern University, University of Washington, The Regents of the University of CaliforniaFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.866, Aging ResearchFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.946, Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative ProgramsPass-Through Grantor: Northwestern UniversityFederal Grantor: United States Department of Health and Human Services (HHS)Assistance Listing No.: 93.994, Maternal and Child Health Services Block Grant to the StatesPass-Through Grantor: Northwestern Memorial HospitalCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain grants related to the Research and Development Cluster were misstated by $233,405 on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.In addition, an award which was not a federal grant award with expenditures of $148,388 was included on the preliminary Schedule provided by management. The final Schedule was corrected.Cause:Endeavor’s internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:The table below reflects the preliminary and adjusted assistance listing balances on the Schedule (only assistance listing programs which changed are included below):Identification as a repeat finding, if applicable:The finding is not a repeat finding from the prior year.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Award amounts were changed on the Schedule after management’s review was executed. Management acknowledges that implementing the new Enterprise Resource Planning (ERP) system, in 2023 presented changes to the SEFA reporting. Management has identified and addressed the reporting issues within the new system to ensure that the grant totals are appropriately captured in the SEFA.Endeavor will enhance grant management award processes by revising its procedures and adding additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the Schedule reporting totals to facilitate accurate reporting.
Finding 2023-006 – Reporting – SEFA Preparation Information of the federal program:Federal Grantor: United States Department of Health and Human Services Assistance Listing No.: 21.027, Coronavirus State and Local Fiscal Recovery Fund Criteria or specific requirement (including statutory, regulatory or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.” Condition: Endeavor did not provide a complete and accurate listing of all federal awards in the SEFA. Cause:Endeavor did not include all funds expended under the Coronavirus State and Local Fiscal Recovery Fund on the SEFA. Effect or potential effect:The SEFA prepared by Endeavor in fiscal year 2023 was misstated but was subsequently corrected. Themisstated SEFA resulted in the improper identification of federal award major programs, and therefore resulted in a restatement of a previously issued Uniform Guidance report. Questioned costs:None Context:Expenditures for ALN 21.027 were understated by $1,399,999, which resulted in the program being identified as a major program upon inclusion of the costs. Identification as a repeat finding, if applicable:This finding is not a repeat finding. Recommendation:Endeavor should review its internal controls over the process of accumulating and reporting expenditures of federal awards to ensure a completed and accurate SEFA presentation. Views of responsible officials:The grant was received and expended during a period that overlapped fiscal years, and internal miscommunication led to its initial exclusion from the SEFA submitted for audit. Management will enhance the SEFA preparation process by revising its procedures and adding additional controls to monitor for completeness of the data. This will include comparisons to the prior year programs, enhancing the Company’s grant tracking process, and review of the SEFA with key stakeholders. Upon identification of the omission, management reviewed the grant activity and has taken corrective action to ensure proper inclusion in future SEFA reports.
Preparation of Schedule of Expenditures of Federal Awards Federal Agency and Pass-through Entity: U.S. Environmental Protection Agency – Georgia Environmental Finance Authority Program Title/Cluster: Clean Water State Revolving Fund Cluster (CWSRF) Criteria: The Schedule of Expenditures of Federal Awards is a supplemental schedule to the financial statements required to be produced when the entity is subject to a single audit. The single audit requirement is triggered when the federal expenditures reported on the Schedule of Expenditures of Federal Awards exceed $750,000 or more within an entity’s fiscal year. Uniform Guidance 2 CFR §200.510(b) states “The auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with §200.502.” Condition: For the year ended December 31, 2023, the City kept records of all expenditures and receipts of funding from drawdown requests together with support of payments and deposits of funds related to all federal expenditures but did not present those expenditures correctly or completely on a Schedule of Expenditure of Federal Awards that met minimum requirements as established by Uniform Guidance 2 CFR §200.510(b). Effect: An accurate representation of total federal expenditures for the fiscal year is required to clearly identify federal expenditures for the audit period. The absence of a complete and accurate Schedule of Expenditures of Federal Awards for the audit period is noncompliant with the requirements set forth under Uniform Guidance 2 CFR §200.510(b) but does not constitute a significant deficiency or material weakness in internal control over compliance. Questioned Costs: None reported. Recommendation: The City should implement a policy requiring entry of any federal expenditures to the Schedule of Expenditures of Federal Awards as part of the drawdown or pay request processes when submitting expenditures to the Federal Agency or Pass-through Entity providing funding. The procedures should be followed consistently to ensure that federal funds are appropriately accounted for and clearly identifiable for the period in which they occurred. The City of Hartwell should refer to the compliance requirements of Title 2 U.S. Code of Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, and ensure the City meets the minimum Schedule of Expenditures of Federal Awards requirements as described in 2 CFR §200.510(b). Status: This finding is a repeat from the prior year’s issue, indicating that the corrective actions recommended in the previous audit were not fully implemented.
Section II – Financial Statements Findings Finding No. 2023-001 Material Weakness on Internal Controls over Financial Reporting Requirements Inaccurate and Incomplete Accounting Records Criteria 20 CFR 200.510 requires auditees to prepare financial statements that reflect its financial position, results of operations and changes in net assets for the fiscal year audited. Also, the accounting system established should be designed to reflect or provide complete and clear information related to the agency's financial results of operations. It should also provide accurate reports that act as a basis for the preparation and support of the budget needs and for the control and proper monitoring of the budget. 29 CFR, Part 97, Subpart C, Section 97.20 "Standards for financial management systems", establishes the following: (a) A State must expand and account for grant funds in accordance with State laws and procedures for expending and accounting for its own funds. Fiscal control and accounting procedures of the State, as well as its sub-grantees and cost-type contractors, must be sufficient to (1) Permit preparation of reports required by this part and the statutes authorizing the grant, and (2) Permit the tracing of funds to a level of expenditures adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of applicable statutes; (b) The financial management systems of other grantees and sub-grantees must meet the following standards: (1) Financial reporting. Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant or sub-grant; (2) Accounting records. Statement of Condition The entity has no established policies and procedures to ensure that financial statements are prepared with accurate and reliable information on a timely basis. No adequate and timely recording procedures are performed in the general ledger accounts. The accounting records were not properly closed, and significant adjustments were made to the general ledger accounts. The financial information is not reviewed, analyzed and reconciled on a monthly basis by management. Management provided an incomplete and inaccurate trial balance resulting in several audit adjustments. The significant audit adjustments were as follows; 1. Understatement of deferred revenue in the amount of $2.5 million. 2. Adjustment of inventory by $875 thousand. 3. Liability to an agency not recognized in the amount of $220 thousand. 4. Overstatement of accounts receivable by $481 thousand. 24 Section II – Financial Statements Findings (Continued) We can conclude that these situations represent a systemic material weakness in the accounting records that increase the risks that errors may occur and not be detected in a timely manner. The adjustments were made to the audited financial statements presented on this report. Cause of Condition Management did not perform an accounting closing analysis to assure that all transactions and adjusting entries are recognized in the financial statements. Lack of adequate accounting procedures for reconciliation and analysis of the financial transactions recorded during the year. Effect of Condition The entity may not be able to detect errors or irregularities on a timely basis. Financial statements may not present its financial position and results for operations. Recommendation The Organization should establish policies and procedures to perform monthly preparation of its financial statements with complete and accurate information. The adjustments and analysis of accounts should be improved to obtain financial statements on time for the decision-making process. Management should analyze the balances and transactions periodically throughout the year to accelerate the accounts analysis and effectively monitor and perform the year-end closing process. Management Response Management concurs with the findings. The closing process will be improved to perform detailed reviews of the closing process and to obtain reliable and complete general ledger. Responsible Officials Mr. Marcos Rivera CEO
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
2023-001 Implement System-Based Tracking of Federal Expenditures Assistance Listing Number: 93.566 Assistance Listing Program Title: Refugee and Entrant Assistance – State - Administered Programs Federal Agency: Department of Health and Human Services (HHS) Passed Through Entities: 1. California Department of Social Services 2. University of California, San Diego 3. California Rural Legal Assistance Foundation 4. San Diego Refugee Communities Coalition/United Women of East Africa Support Team Federal Award Numbers: ALSP22-0002-A1, PUR00533092, ALSP22-0001, and ACS22-05-CAIR-A1 Federal Award Year: 8/1/2022 to 3/31/2025 Compliance Requirement: Activities Allowed or Unallowed Criteria: Management is responsible for designing, implementing, and maintaining an internal control system that ensures accurate financial reporting. Effective internal control over financial reporting provides reasonable assurance regarding the completeness and accuracy of accounting records, and compliance with grantor requirements. 2 CFR 200.510 Financial Statements require auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. This schedule must include the total Federal awards expended, as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records (i.e., general ledger). In addition, Section 2 CFR 200.302(b)(1) provides that non-Federal entities must maintain effective control over and accountability for all funds, and must identify, in their accounts, all Federal awards received and expended. Condition: During our review of the SEFA, we noted that CAIR-CA currently utilizes workbooks outside of its accounting software to track federal expenditures. The external workbooks do not reconcile directly with the general ledger (GL) requiring management to prepare a separate reconciliation to support the SEFA amounts. Cause: This year marks CAIR-CA’s first Single Audit. As such, processes and internal controls over federal award tracking are still under development. The current system is not yet fully integrated to allow for automated or system-based tracking of federal expenditures by grant. Effect: Relying on manual workbooks to track federal expenditures can be inefficient and may result in inaccurate or incomplete reporting of federal expenditures. Questioned Cost: None Recommendation: We recommend that CAIR-CA enhance its accounting processes to enable the tracking of federal expenditures directly within its accounting software. This can be accomplished by implementing GL tracking codes or tags specifically designated for federal expenditures. Transitioning to a system based tracking approach will support consistency between the general ledger and the SEFA, simplify the process of generating financial reports, and improve the tracking of federal expenditures. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. As part of a layered approach to internal controls, Excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Expected Implementation date: November 20, 2025
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Item 2023-004: Preparation of Schedule of Expenditures of Federal Awards Identification of federal programs: All Assistance Listing Numbers included on the schedule of expenditures of federal awards for the period from July 1, 2023 to December 31, 2023. Federal award grant number: 204645, 203684, 236829, 229353, and 031875505 Federal agency: U.S. Department of Agriculture, U.S. Department of Treasury Pass-through entity: Minnesota Department of Health, Minnesota Department of Human Services, and Wisconsin Department of Agriculture, Trade and Consumer Protection Criteria: The Uniform Guidance (2 CFR 200.510) requires the auditee to prepare the schedule of expenditures of federal awards to cover the correct reporting period and contain certain information to be considered complete. Condition: We noted the initial schedule of expenditures of federal awards presented for audit was incorrectly for the year ended June 30, 2024. Once the correct period was determined and the revised schedule of expenditures of federal awards was received for the period from July 1, 2023 to December 31, 2023, additional findings were noted as follows: • Food Distribution Cluster program was not properly grouped by federal Assistance Listing Number. • Pass-through entity identifying numbers listed for three programs were incorrect. Once the pass-through entity numbers were corrected, it was determined that two of the programs were the same and should be combined as one listing. • Coronavirus State and Local Fiscal Recovery Funds had improper identification of federal department, pass-through entity and pass-through entity identifying number. This program was improperly included in the Food Distribution Cluster. Cause: The exceptions noted above were due to a breakdown in SHNLFB’s procedures to ensure that the schedule of expenditures of federal awards is in accordance with the Uniform Guidance. Further, we noted there is no documented review and approval of the schedule of expenditures of federal awards. Effect: Improper schedule of expenditures of federal awards was presented for audit. Questioned costs: None Context: The schedule of expenditures of federal awards was not prepared consistent with the requirements of the Uniform Guidance (2 CFR 200.510). Repeat finding: No Recommendation: SHNLFB should continue to improve its procedures around the preparation and review of the schedule of expenditures of federal awards. Views of responsible officials of the auditee: SHNLFB concurs with this finding and a response is included in the corrective action plan.
Material Weakness/Noncompliance – Other 2 CFR §200.510(b) states, in part, that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a. List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b. For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c. Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d. Include the total amount provided to subrecipients from each Federal program. e. For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f. Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. Subsequent to the original issuance of the 2023 audit report dated July 23, 2024, with the assistance of the pass-through entity, it was determined that the City omitted a federally funded program under the Highway Planning and Construction (ALN 20.205) – PID# 110419. The related expenditures of $2,378,835, were materially misstated by the exclusion from the City’s originally provided SEFA. The City failed to properly identify/communicate the federal designation of the project. Inaccurate completion of the SEFA could lead to inaccurate reporting of federal expenditures by the City and could jeopardize future federal funding. We recommend the City work with its departments to ensure all grant activity is properly included and a materially accurate Schedule is presented for audit. Furthermore, the City can reach out to various Ohio agencies to assist in determining Federal activity. Officials Response: See Corrective Action Plan.
Assistance Listing, Federal Agency, and Program Name 21.027 U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year MH 1251 2023 Pass through Entity The Ohio Department of Mental Health and Addiction Services Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502 basis for determining federal awards expended. Condition Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. Questioned Costs N/A If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A Identification of How Questioned Costs Were Computed N/A Context ProMedica did not initially include the funds received through the Ohio Department of Mental Health and Addiction Services Coronavirus State and Local Fiscal Recovery funds on the SEFA. Cause and Effect ProMedica has a process in place to identify all potential sources of federal funding received during the year, however they received some incorrect information when going through these procedures, resulting in the SEFA being incomplete for the year ended December 31, 2023. Upon discovery of the error, ProMedica prepared a SEFA that included the Ohio Department of Mental Health and Addiction Services Coronavirus State and Local Fiscal Recovery funds. This lack of controls resulted in the reissuance of the 2023 single audit. Recommendation Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA. Views of Responsible Officials and Corrective Action Plan Management fully understands the importance of internal controls to ensure the schedule of federal expenditures is complete and accurate. The Grants Department will amend its current written processes regarding award establishment to include requiring documentation indicating an award is federal funds prior to establishing the project in Infor CloudSuite Financials & Supply Management (Accounting software). Additionally, the Grants Department will routinely audit the database the department utilizes to record awards to ensure the field to note federal awards is properly updated. Furthermore, the SEFA will be reviewed with documented sign-off by each member of the Grants Team prior to submission
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.
Federal Award Number and Award Year AL No. 93.958, 93.959 and 93.558, QG002 20, award year 7/1/2022 – 6/30/2024 AL No. 93.958, 93.959 and 93.558, ME015, award year 7/1/2022 – 6/30/2024 Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the entity’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR section 200.303 requires that non federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition and Context The Organization did not have adequate internal controls related to reporting of expenditures on the SEFA for Temporary Assistance for Needy Families, Block Grants for Community Mental Health Services, and Block Grants for Prevention and Treatment of Substance Abuse. Specifically, the Organization’s controls to reconcile expenditures from their internal tracking spreadsheets to the appropriate assistance listing numbers within the underlying grant/contract documentation, including the original contract and “Post Award Notices” (PAN) spreadsheets, were not operating as designed. As a result, the Organization determined that $2,601,106 of Temporary Assistance for Needy Families expenditures were incorrectly reported under the Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse programs. Possible Cause and Effect In discussing the condition with the Organization’s management, they stated it was caused by the use of an outdated PAN spreadsheet, which led to expenditures being incorrectly reported on the SEFA under the wrong ALN. Additionally, management review controls over the completeness and accuracy of the SEFA were not designed to detect the error. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA may prevent the Organization from completing an audit in accordance with the timelines of Uniform Guidance. Questioned Costs None. Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should enhance its system of internal control to ensure that the SEFA is complete and accurate. View of Responsible Official Management agrees with the noted finding.