Finding # 2025-001 Type: Material weakness over allowable costs Type: Immaterial noncompliance over allowable costs Assisting Listing Number: 43.001 Federal Agency: National Aeronautics and Space Administration Name of Federal Program: Science Finding: One individual computes the indirect charges and prepares the drawdown requests without a secondary review by a senior member of management. Two out of forty expenses tested were completed by one individual with no review. Three out of four cash draws tested were submitted with no secondary review. Immaterial errors were noted in amounts charged for indirect costs. Recommendation: Management should establish a consistent procedure to ensure indirect rate calculations and monthly billings are reviewed prior to submission. Corrective Action: As a result of administrative disruption caused by a transition in the Chief Financial Officer role, we were required to catch up as quickly as possible. During this catch-up period, normal review processes were not fully in place due to the noted staff transitions. This was a one-time situation and has since been remedied through the implementation of formalized policies and procedures governing the preparation, review, and timely submission of federal reports. We have transitioned to an accounting software that limits the ability for indirect rate calculations to be completed by one individual. Monthly draw requests will be completed by the Finance Director during month-end close and submitted to the Chief Financial Officer for review prior to submission. Anticipated Completion Date: December 20, 2025