Finding 1181751 (2024-004)

Assistance Listing Number, Federal Agency, and Program Name 93.332 U.S. Department of Health and Human Services Navigator Grants Program Federal Award Identification Number and Year NAVCA210431 02, NAVCA210431 03 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria During the 2024 single audit, a federal grant was incorrectly included in the Research and Development (R&D) cluster. The grant should have been identified as a separate federal program and tested as a major program in accordance with the Uniform Guidance requirements. Condition Federal programs must be grouped into clusters only when specifically designated by the Office of Management and Budget (OMB). Questioned Costs N/A Identification of How Questioned Costs Were Computed N/A Context During 2025, fiscal year single audit testing of the 2025 major programs identified that a program was incorrectly included in the R&D cluster when it should have been listed as a separately identified program. Cause and Effect The error occurred due to misclassification of the grant on the schedule of expenditures. As a result, a separately identified program should have been selected as a major program during the 2024 audit and this report must be reissued to reflect the correct classification and testing of the major program. Recommendation Controls over SEFA classification and clustering should be implemented in order to properly present the SEFA. Views of Responsible Officials and Planned Corrective Actions Additional review procedures have been implemented to prevent SEFA classification errors. Specifically, the sponsored research accounting manager now conducts a detailed review of the award documentation prior to SEFA categorization. Furthermore, a verification step has been added to the grant setup checklist, performed by sponsored research accounting staff, to ensure accurate classification of all awards prior to inclusion in SEFA reporting.