FAC Explorer

Finding 1238618 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-09-30
Audit: 413540
Organization: National Council on Radiation Protection and Measurements (MD)
Auditor: COUNCILOR BUCHANAN & MITCHELL PC

AI Summary

  • Core Issue: $479,625 in federal expenditures were missing from the Schedule of Expenditures of Federal Awards (SEFA), despite being recorded in the general ledger.
  • Impacted Requirements: Management must ensure accurate preparation and reconciliation of the SEFA, which was not met due to inadequate year-end financial reporting processes.
  • Recommended Follow-Up: Strengthen grant accounting controls and improve communication between accounting staff to ensure all expenditures are accurately recorded and reported in the SEFA.

Finding Text

Finding 2025-002: Significant Deficiency in Internal Control over Compliance - Completeness of Schedule of Expenditures of Federal Awards (SEFA) Agency: National Aeronautics and Space Administration ALN: 43.003 and 43.008 Condition and Context: During the audit, we identified $479,625 of federal expenditures that were excluded from the SEFA. However, the related expenses were recorded in the expense general ledger. In addition, an audit adjusting entry was posted to record grant revenue and accounts receivable related to this activity. Criteria: Management is responsible for the proper preparation and reconciliation of the SEFA. Cause: The year-end financial reporting process did not include an accurate reconciliation of grant agreements, reimbursement requests, and other supporting documentation to the general ledger and SEFA. Effect: The SEFA was incomplete by $479,625 prior to audit adjustment because federal expenditures were excluded from the SEFA even though the related expenses were recorded in the expense general ledger. Questioned Costs: $-0-. Repeated Finding: The finding is similar to prior-year Finding 2024-002; however, the current-year finding relates to SEFA completeness and the exclusion of federal expenditures from the SEFA. Recommendation: We recommend that NCRP strengthen its grant accounting and financial reporting controls to ensure that all grant revenue and related expenditures are completely and accurately recorded in the general ledger and reported in the SEFA. We continue to recommend, as part of the system of internal controls over the monthly and year-end closing process, that the outsourced and internal accounting staff communicate and coordinate efforts relating to the closing process. Management Response: NCRP agrees with the finding. The procedures established after Finding 2024-002 did not detect this item, and management's review was not documented. The Financial Manager will maintain an award-level schedule of federal expenditures, reconciled monthly to the general ledger, and the President and an accounting reviewer will review and sign off on the SEFA before it is given to the auditors.

Corrective Action Plan

Monthly grant-by-grant reconciliation of grant agreements, reimbursement requests, and supporting documentation to the general ledger. Documented second-level review by the President and accounting reviewer before each month-end close is finalized. Standing monthly closing meeting between the Financial Manager and accountant (agenda and minutes retained), more frequent during year end and audit. Contact person, Myrna A. Young, Financial Manager, oversight by Kathryn A. Higley, NCRP President, anticipated completion October 31, 2026.In addition, an award-level schedule of federal expenditures is updated monthly, reconciled to the general ledger, and used to prepare the SEFA, which is reviewed and approved by the President and [outsourced accounting reviewer] before it goes to the auditors. Contact person, Myrna A. Young, Financial Manager, oversight by Kathryn A. Higley, NCRP President, anticipated completion October 31, 2026. In place for one year, ending December 31, 2026.

Categories

Reporting

Other Findings in this Audit

  • 1238617 2025-002
    Material Weakness Repeat
  • 1238619 2025-003
    Material Weakness Repeat
  • 1238620 2025-003
    Material Weakness Repeat
  • 1238621 2025-003
    Material Weakness Repeat
  • 1238622 2025-003
    Material Weakness Repeat
  • 1238623 2025-003
    Material Weakness Repeat
  • 1238624 2025-004
    Material Weakness Repeat
  • 1238625 2025-004
    Material Weakness Repeat
  • 1238626 2025-004
    Material Weakness Repeat
  • 1238627 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $1.25M
43.003 EXPLORATION $619,074
93.070 ENVIRONMENTAL PUBLIC HEALTH AND EMERGENCY RESPONSE $362,296
81.108 EPIDEMIOLOGY AND OTHER HEALTH STUDIES FINANCIAL ASSISTANCE PROGRAM $170,882