Finding Text
2022-006: ADMINISTRATIVE FEES Criteria: The Company has been approved to draw up to 7% of expenses each period to fund management of the grant awards. Condition: The Company drew administrative fees from grants in excess of approved levels based on expenses in the period. Cause: The Company did not maintain accurate financial statements as noted in finding 2022-001. Effect: The Company improperly drew administrative funds. Questioned Costs: N/A Perspective Information: The issue is considered to be prevalent throughout the financial statements. Repeat Findings: Not a repeat finding. Recommendation: The Company should maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements. View of Responsible Officials and Planned Corrective Action: The Company will maintain proper accrual based financials in accordance with U.S. GAAP as required by grant agreements.