Finding Text
Federal agency name: U.S. National Science Foundation and U.S. Department of Agriculture
Federal program title: Geosciences, Computer and Information Science and Engineering, Office of Cyber Infrastructure, Integrative Activities & Forestry Research
AL No.: 47.050, 47.070, 47.079, 47.080, 47.083 & 10.652
Federal Award Identification No. & Award Period: EAR-1849458 (06/01/2019-05/31/2024), EAR-2012893 (10/01/2020 – 08/31/2025), EAR-2028793 (05/15/2020 – 04/30/2021), OAC-1931278 (10/1/2019 – 09/30/2022), OAC-1829744 (09/01/2018 – 08/31/2023), OAC-1835592 (01/01/2009 – 12/31/2022), OAC-1835818 (10/01/2018 – 09/30/2022), OISE-1855654 (05/15/2019 – 12/31/2023), OAC-1664061 (10/01/17 – 09/30/2022), OIA-1937099 (09/01/2020 – 08/31/2021) & 19-DG11330140-083 (09/26/2019 – 09/30/2021)
Pass Through Entity: Utah State University & University of Cincinnati
MW2020-002 ACCURACY AND COMPLETENESS OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (“SEFA”)
Criteria
CUAHSI is required to prepare a SEFA in accordance with the prescribed guidelines of the Uniform Guidance (“UG”). In addition, 2 CFR Section 200.512(a) of the Uniform Guidance requires the reporting package and Data Collection Form (“DCF”) to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditor or nine months after CUAHSI’s year end.
Condition
CUAHSI provided two different versions of the SEFA to the auditor during the audit process. The auditor noted CUAHSI incorrectly identified the qualified expenditures related to the federal grant programs. Additionally, due to the delay in financial close of CUAHSI’s books and records, a federal single audit for the year ended December 31, 2020 was not performed in a timely manner and the DCF was not submitted by its due date of March 31, 2022. The inaccurate reporting of grants and related activity in the SEFA can lead to improper identification of major programs causing inadequate testing by the auditor as required by UG. As a result of the audit procedures performed and proposed adjustments to CUAHSI’s preliminary SEFA by the audit, management was able to make the required changes.
Cause & Context
Due personnel and staffing issues, CUAHSI was not able to complete the financial close process in a timely manner which led to the changes in qualified expenditures and delay in the financial statement and the federal single audit being completed.
Effect
Failure to comply with federal regulations and reporting requirements exposes CUAHSI to potential legal and regulatory consequences, including the risk of future funding loss and financial penalties.
Questioned Costs
None
Prior Year Audit Finding
Yes - previously reported as MW2019-006.
Recommendation
To address the identified deficiencies and improve controls over the preparation of the SEFA, the auditor recommends the development and documentation of procedures for tracking federal awards and related disbursements to subrecipients.
View of Responsible Official and Planned Corrective Action
See accompanying Corrective Action Plan.