FAC Explorer

Finding 382613 (2022-001)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2024-03-20
Audit: 296191
Organization: Delaware Academy of Medicine, Inc. (DE)
Auditor: Cover & Rossiter

AI Summary

  • Issue: The Academy failed to recognize its DHHS-HRSA grant as Federally sourced, leading to improper reimbursement claims.
  • Trend: This oversight resulted in the Academy seeking reimbursement for about $138,685 in costs, of which $67,823 was already reimbursed.
  • Follow-up: Review and ensure compliance with 2 CFR Section 200 to avoid future unallowable cost claims.

Finding Text

The Academy did not identify its DHHS-HRSA grant passed through the Public Health Management Corporation as Federally sourced and subject to 2 CFR Section 200 which dictates allowable and unallowable costs. This resulted in the Academy applying for reimbursement for costs of approximately $138,685 which were not allowable. $67,823 was immediately reimbursed.

Corrective Action Plan

In the exploratory phase of applying for a new grant, the Executive Director will ascertain whether or not the source of funding is Federal. The Executive Director will be assisted in this responsibility by a professional accountant that has been retained from an accounting firm. Where any doubt exists, the funding partner will be contacted to confirm their perspective.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 382611 2022-002
    Material Weakness
  • 382612 2022-003
    Material Weakness
  • 382614 2022-002
    Material Weakness
  • 382615 2022-003
    Material Weakness
  • 959053 2022-002
    Material Weakness
  • 959054 2022-003
    Material Weakness
  • 959055 2022-001
    Material Weakness
  • 959056 2022-002
    Material Weakness
  • 959057 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Recovery Funds $641,977
93.011 National Organization of State and Local Officials $294,603
45.129 Promotion of the Humanities - Federal /state Partnership $11,000