Finding 560416 (2024-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-05-15

AI Summary

  • Core Issue: The Foundation lacks a formal review and approval process for performance and financial reports.
  • Impacted Requirements: This deficiency violates 2 CFR §200.303, which mandates effective internal controls for managing Federal awards.
  • Recommended Follow-Up: Implement a documented approval process for all performance and financial reports to prevent potential reporting errors.

Finding Text

Finding 2024-005: Reporting (Significant Deficiency) Information on the Federal Program: 93.368 Criteria: As noted in 2 CFR §200.303 "The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: We noted that while the Foundation does not have a formal review and approval process in place over performance and financial reports that is documented and available for examination. Cause: The Foundation does not document their review and approval process over performance and financial reports. Effect or Potential Effect: Without the proper approval processes in place over performance and financial reports, there exists the potential for reporting errors. Questioned Costs: None noted. Context: Our audit procedures consisted of testwork performed over a sample of reports required to be submitted during the year under audit. We consider our sample to be representative of the population. The issue appears to be systematic in nature. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Foundation ensure that all approvals over performance and financial reporting are clearly documented and available for examination.

Corrective Action Plan

Views of Responsible Officials: DREF is in the process of hiring a part-time CFO to review all financial reports.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 560415 2024-004
    Significant Deficiency
  • 560417 2024-006
    Significant Deficiency
  • 560418 2024-007
    Material Weakness
  • 1136857 2024-004
    Significant Deficiency
  • 1136858 2024-005
    Significant Deficiency
  • 1136859 2024-006
    Significant Deficiency
  • 1136860 2024-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.368 21st Century Cures Act - Precision Medicine Initiative $1.26M