FAC Explorer

Finding 480571 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-06
Audit: 316778
Organization: The Urban Institute (DC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: Internal controls for preparing the Schedule of Expenditures of Federal Awards (SEFA) failed, leading to misclassification of 22 awards as research and development.
  • Impacted Requirements: Compliance with CFR Section §200.510(b) was not met, affecting the accuracy of the SEFA and potentially leading to incorrect major program selection.
  • Recommended Follow-Up: Enhance training for SEFA preparers and reviewers to ensure proper classification of awards, starting the review process before signing award agreements.

Finding Text

Significant Deficiency in Compliance and Internal Control over Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards). Criteria: CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” For a cluster of programs, the schedule must provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For a cluster of programs, the total for the cluster must also be provided. Condition: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed. BDO identified the following matters during our testing of the SEFA: During our testing of management’s preparation of the Schedule of Expenditures of Federal Awards (the SEFA), BDO identified 22 awards that were incorrectly classified as research and development. In each case, the federal awarding agency or pass-through entity noted in the award agreement the award was not classified or considered as research and development. Management subsequently updated the classifications on the SEFA and corrected the presentation of various programs presented as both clusters and nonclusters on the SEFA. The SEFA, as presented, includes the corrections made by management. Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Any samples selected as part of the overall SEFA review were performed using a non-statistical method. Cause: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not fully operate as designed. Urban prepares the SEFA once per year in conjunction with the annual audit and did not include a procedure to properly identify research and development classification. Effect: The SEFA provided to BDO required several awards to be removed from the research and development cluster. Failure to present the SEFA correctly would have resulted in incorrect major program selection and an incorrect presentation of the overall SEFA. Repeat Finding: This is not a repeat finding. Recommendation: We recommend management continue to focus on training for both preparer and reviewers of the SEFA to ensure the identification of research and development classification from federal awarding agencies or pass-through entities is properly captured on the schedule. We suggest this review process begin before the Institute signs an award agreement to determine whether the agreement states whether it is considered to be research and development. The Institute would then be aware of the classification prior to committing to the terms of the award. This will ensure that the SEFA presents all relevant information as prescribed to ensure proper reporting on the SEFA and major program determination. Views of Responsible Officials: Management of the Institute agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.

Corrective Action Plan

Appendix A - Management’s Corrective Action Plan Year Ended December 31, 2023 2023-001 Significant Deficiency in Compliance and Internal Control over Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Corrective Actions: 1. Utilize attribute/field in accounting system: • Leverage the existing attribute/field in the accounting system to capture R&D/cluster classification information for each federal award. • Completed 2. Provide training and awareness: • Educate relevant staff on the importance of accurate award classification, including the criteria for R&D/cluster classification and procedures for tracking and SEFA reporting. • Initial training completed; ongoing regular sessions planned 3. Reinforce award classification during award setup: • Ensure award classification is consistently considered and accurately captured during the award setup process. • Provide clear instructions and reminders to encourage staff to complete this critical step. • Ongoing 4. Regularly review and verify award classifications: • Perform regular internal audits, reviews, and verifications to ensure award classifications are accurate, consistent, and compliant with established procedures. • Ongoing, with initial review completed within 90 days Individual(s) Responsible for Corrective Action Plan Name: Robert M. Buchanan Position: Vice President, Controller, and Treasurer Contact number: (202) 261-5322

Categories

Reporting

Other Findings in this Audit

  • 480572 2023-001
    Significant Deficiency
  • 480573 2023-001
    Significant Deficiency
  • 480574 2023-001
    Significant Deficiency
  • 480575 2023-001
    Significant Deficiency
  • 480576 2023-001
    Significant Deficiency
  • 480577 2023-001
    Significant Deficiency
  • 480578 2023-001
    Significant Deficiency
  • 480579 2023-001
    Significant Deficiency
  • 480580 2023-001
    Significant Deficiency
  • 480581 2023-001
    Significant Deficiency
  • 480582 2023-001
    Significant Deficiency
  • 480583 2023-001
    Significant Deficiency
  • 480584 2023-001
    Significant Deficiency
  • 480585 2023-001
    Significant Deficiency
  • 480586 2023-001
    Significant Deficiency
  • 480587 2023-001
    Significant Deficiency
  • 480588 2023-001
    Significant Deficiency
  • 480589 2023-001
    Significant Deficiency
  • 480590 2023-001
    Significant Deficiency
  • 480591 2023-001
    Significant Deficiency
  • 1057013 2023-001
    Significant Deficiency
  • 1057014 2023-001
    Significant Deficiency
  • 1057015 2023-001
    Significant Deficiency
  • 1057016 2023-001
    Significant Deficiency
  • 1057017 2023-001
    Significant Deficiency
  • 1057018 2023-001
    Significant Deficiency
  • 1057019 2023-001
    Significant Deficiency
  • 1057020 2023-001
    Significant Deficiency
  • 1057021 2023-001
    Significant Deficiency
  • 1057022 2023-001
    Significant Deficiency
  • 1057023 2023-001
    Significant Deficiency
  • 1057024 2023-001
    Significant Deficiency
  • 1057025 2023-001
    Significant Deficiency
  • 1057026 2023-001
    Significant Deficiency
  • 1057027 2023-001
    Significant Deficiency
  • 1057028 2023-001
    Significant Deficiency
  • 1057029 2023-001
    Significant Deficiency
  • 1057030 2023-001
    Significant Deficiency
  • 1057031 2023-001
    Significant Deficiency
  • 1057032 2023-001
    Significant Deficiency
  • 1057033 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $3.35M
17.285 Apprenticeship USA Grants $2.03M
17.RD Option Year 3 $1.20M
17.RD Optional Task 7 $1.08M
93.RD Child Welfare Evidence Clin 3 09341-A-003 $941,186
93.575 Child Care and Development Block Grant $909,590
17.RD Apprenticeship Building America Evaluation $771,180
93.RD Annual Survey of Refugees 2020-2022 Clin 5 $737,960
17.RD Oa Youth Apprenticeship Option Year 4 $725,420
16.734 Special Data Collections and Statistical Studies $698,793
93.RD C1 Supply-Building and Sustainability Effort Sc1 $561,912
93.RD Option Period 1 $498,551
93.RD Consumer Education and Parental Choice Clin 4 $462,179
93.RD Tanf Welfare Rules Database 2021 Osc2 $442,483
16.812 Second Chance Act Reentry Initiative $425,235
93.RD Advancing Campe Sc1 $416,769
17.RD Optional Task 10 $415,762
96.007 Social Security_research and Demonstration $408,561
93.RD Deloitte-Health Equity Accelerator Oy1 $393,646
17.RD Older Workers Implementation and Descriptive Study $379,693
93.RD Clin3 Option Year 2 $328,966
93.866 Aging Research $313,342
10.579 Child Nutrition Discretionary Grants Limited Availability $263,542
16.029 Office on Violence Against Women Special Projects $261,862
93.RD Ccdf Policies Database Clin 5 $249,801
14.536 Research and Evaluations, Demonstrations, and Data Analysis and Utilization $235,797
11.307 Economic Adjustment Assistance $232,947
16.026 Ovw Research and Evaluation Program $229,554
84.305 Education Research, Development and Dissemination $224,043
93.RD Hs2ehs Clin1 $223,198
14.RD Choice Neighborhoods Implementation Eval 01004 $215,011
17.RD Office of Disability Employment Policy and Eval $213,884
84.215 Fund for the Improvement of Education $213,572
14.RD Final Evaluation of the Hud-Doj Pay for Success $206,926
17.RD Optional Task 8 $203,753
16.RD Evaluation of Federal Bureau of Prisons Reentry Pr $203,733
11.312 Research and Evaluation Program $196,437
93.RD Stage 2 Medicare-Medicaid Eval 09346-A-001 $194,486
93.RD Ccecb Center Clin 13 Osc5 $194,051
93.RD Hs2ehs Clin5 $193,184
93.RD Tanf Welfare Rules Database 2021 Osc1 $186,791
93.RD Hs2ehs Clin2 $184,505
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $180,520
17.RD Dol Disclosure Review Bpa $175,960
17.RD Base Contract Tasks 1-6 $174,205
93.RD Clin 30 Optional Task 3.01 $167,927
17.RD Clin0003 Optional Task 8: Impact Or Outcomes Evalu $165,362
93.RD C5 Supply-Building and Sustainability Effort Osc4a $164,844
16.827 Justice Reinvestment Initiative $162,849
17.RD Optional Task 11 $162,159
17.RD Advancing Behavioral Interventions in Labor Progra $160,994
93.RD Hs2ehs Clin3 $158,065
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $154,528
93.RD Clin 31 Optional Task 3.02 $153,138
93.RD Ccecb Center Clin 10 Osc3d $150,730
93.RD Child Welfare Evidence Clin 2 09341-A-002 $143,996
14.RD Housing Choice Voucher Yr4 $138,728
93.RD Drivers of Costs Among Post-Acute Care Providers $129,987
93.RD Advancing Campe Osc2 $127,630
21.017 Social Impact Partnerships to Pay for Results Act (sippra) (b) $122,136
93.RD Clin4 Option Year 3 $120,260
84.RD Ipa - Kristin Blagg $116,652
93.RD Maternal Opioid Misuse - Ipr $115,362
93.RD Consumer Education and Parental Choice Clin 1 $111,547
14.RD Choice Neighborhoods Implementation Eval 01110 $106,776
93.RD Hs2ehs Clin4 $104,572
93.RD Clin 32 Optional Task 3.03 $98,561
93.RD Ccdf Policies Database Clin 6 $92,784
93.RD Annual Survey of Refugees 2020-2022 Clin 7 $92,618
93.RD Annual Survey of Refugees 2020-2022 Clin 8 $89,062
98.001 Usaid Foreign Assistance for Programs Overseas $88,492
93.RD Inpatient Rehabilitation Facilities (irf) Payment $81,946
93.RD Consumer Education and Parental Choice Clin 3 $80,530
93.RD Clin 2 $75,946
14.RD Evaluation of the Hud-Doj Pay for Success Re-Entry $73,872
14.RD Housing Choice Voucher Yr3 $71,713
10.310 Agriculture and Food Research Initiative (afri) $71,667
93.RD Ccecb Center Clin 11 Osc3e $70,518
93.RD Effect of Hospice on Medicare Spending $69,490
17.RD Eval Advance Reemployment Services 00630 $64,466
93.RD Hpog Long-Term Followup Add-on $64,328
93.RD Advancing Campe Osc7 $61,418
16.582 Crime Victim Assistance/discretionary Grants $60,435
12.599 Congressionally Directed Assistance $56,997
93.RD Annual Survey of Refugees 2020-2022 Clin 6 $55,535
93.RD Clin 42 Optional Task 4.01 $51,481
19.019 International Programs to Combat Human Trafficking $49,227
14.RD Choice Neighborhoods Implementation Mod 5 $48,120
17.268 H-1b Job Training Grants $46,998
93.RD Advancing Campe Osc5 $46,662
93.RD Clin 37 Optional Task 3.08 $45,800
93.RD Tanf Welfare Rules Database 2021 Osc3 $45,641
93.RD Clin 34 Optional Task 3.05 $45,346
17.RD Optional Task 10: Impact Study with Cost-Benefit $44,203
93.RD Calculating Relative Payment Weights Under Irf Pps $43,788
93.600 Head Start $42,917
16.601 Corrections_training and Staff Development $41,576
93.RD Annual Survey of Refugees 2020-2022 Clin 4 $40,805
93.RD Advancing Campe Osc4 $40,231
93.RD Ccecb Center Clin 6 Osc2e $39,752
21.RD Cdfi Fund New Markets Tax Credit (nmtc) Native Ini $39,261
93.RD Consumer Education and Parental Choice Clin 7 $36,478
47.075 Social, Behavioral, and Economic Sciences $34,952
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $34,709
93.136 Injury Prevention and Control Research and State and Community Based Programs $30,302
10.RD Assessing Equity in Implementation of Abawd Waiver $30,295
93.RD Consumer Education and Parental Choice Clin 2 $29,386
93.RD Clin 44 Optional Task 4.03 $28,821
93.RD Hpog Impact Study Clin 11 $28,150
93.RD Ipa - Gabriel Young $26,693
93.RD Norc-Oy1-Sow2-Clin 22- 9256.22.01.02 $25,733
93.RD Clin 45 Optional Task 4.04 $25,010
93.RD Ptac Option Year 4 $23,981
93.RD Base-Tpra $23,776
93.RD Clin 38 Optional Task 3.09 $23,630
93.RD Medpac-Updated Unified Post-Acute Care Pps Part 2 $22,368
93.RD Ccecb Center Clin 14 Osc6 $21,763
16.838 Comprehensive Opioid Abuse Site-Based Program $20,225
21.RD Ipa - Elaine Maag $17,527
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $16,741
93.RD Clin 51 Optional Task 4.10 $16,387
16.RD Supporting Incarcerated Parents and Their Children $15,962
14.RD Rad Choice Mobility and Long-Term Affordability Ev $15,185
93.RD Advancing Campe Osc3 $14,623
93.RD Norc-Oy1-Sow2-Clin 21-9256.21.01.01 $14,285
93.RD Ccecb Center Clin 9 Osc3c $12,878
93.RD Ptac - Recompete $11,237
14.RD Rad Additional Tenant Outcomes Report $9,912
93.RD Norc-Oy1-Clin 23-Sow1-9256.23.01.02 $9,336
93.RD Hs2ehs Clin6 $8,688
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $8,405
21.RD New Markets Tax Credit (nmtc) Native Initiative $7,442
93.RD Clin 50 Optional Task 4.09 $6,588
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $5,938
93.RD Hs2ehs Clin10 $5,025
93.RD Clin 41 Optional Task 3.12 $4,878
93.RD Medpac-Implementation Strategies Pac Pps Part 3 $4,408
93.RD Clin 43 Optional Task 4.02 $3,496
14.RD Choice Communities Demonstration Funding for Phase $3,308
93.RD 102558-0002-008 Apse-Clin 4-04.01.10 Hhs Training $3,095
93.RD Hs2ehs Clin9 $2,703
93.RD Clin 53 Optional Task 4.12 $2,630
84.RD Optional Task Period 1 $1,781
14.RD Housing Choice Voucher Yr 1 $1,396
17.RD Option Year 1 $581
93.RD Advancing Campe Osc6 $346
17.RD Eval_behvrl_intrvntns_labor_progs_00646 $241
93.RD Ccecb Center Clin 4 Osc2c $85
93.RD Ccecb Center Clin 5 Osc2d $64
84.RD Evaluation of Promise Neighborhoods and Full Servi $-60
93.RD Annual Survey of Refugees 2020-2022 Clin 3 $-76
93.RD Hs2ehs Clin8 $-133
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $-222
14.RD Housing Choice Voucher Yr2 $-1,108