Finding Text
Item 2023-001 – Financial Reporting: Federal Financial Report (SF425) Awarding Agency: U.S. Department of Defense Federal Program: 12.431 – U.S. Army Research Laboratory - Basic Scientific Research; 12.800 - U.S. Air Force Research Laboratory - Air Force Defense - Research Sciences Program Federal Award Identification Number: W911NF-22-2-0050, FA8650-13-2-5402 Grant Period: July 2022 to June 2025; September 2018 to December 2025 Criteria: During the course of the 2023 audit, it was noted during a discussion with management that the financial reports for the above-mentioned awards were not submitted timely. 2 CFR 200.328 requires the reporting of financial information by the auditee according to the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award. The Cooperative Agreements note that reporting period end dates fall on the end of the calendar year for annual reports (12/31) and the end date of the award for the final report. Annual reports are due 30 days after the reporting end date, and the final report is due 90 days after the end date. Condition: We determined that the required annual SF425 for federal award W911NF-22-2-0050 was due by January 31, 2024, and was not submitted as of June 2024. In addition, we determined that the annual SF425 for federal award FA8650-13-2-5402 was due on January 31, 2024, and was submitted on March 25, 2024. Cause: SEMI details the occurrence was due to an administrative oversight. Effect: The SF425 for federal awards W911NF-22-2-0050 and FA8650-13-2-5402 were not submitted timely. Questioned Cost: None Context: This is the first time that it was determined that a financial reporting form for one of their five awards was not submitted according to the required due date. Repeat Finding: No Recommendation: We recommend for management to implement process improvements to ensure financial reports are submitted by their required due dates. Views of Responsible Official: SEMI concurs with the finding and will evaluate process improvements to ensure financial reports are submitted by their required due dates or filing extensions are received in writing on a go-forward basis.