Finding 575646 (2024-002)

Statement of Condition Management missed reporting two federal grants (project 920 and 947) on the December 31, 2023 SEFA. Project 920 with National Institutes of Health (NIH), CFDA 93.838 and Project 947 with Dept of Health & Human Services, CFDA 93.991. Management could not obtain CFDA numbers from the funders at that time and believed that the two grants are not federal grants. Management assumed that if the funders do not provide or do not know if the contracts have CFDA numbers, it meant that the grants are not federal grants, and thus they are not part of SEFA. The two above-mentioned grants were brought up during the 2024 audit. Management successfully retrieved the CFDA for the two Federal grants. Based on our records, expenditure for projects 920 and 947 were $59,161 and $89,072 respectively. Total 2023 Federal expenditures including project 920 and 947 should be $2,462,775 instead of $2,314,542 as previously reported. A 6 percent of 2023 total expenditure grant was under reported. Recommendation Management should be in consistent contact with the project compliance manager to see what accounts should be included and excluded. The project compliance manager should have appropriate knowledge through proper supporting documentation received from third parties that verifies the Statement of Federal Awards is properly presented. Without this control in place the Statement of Federal Awards could be overstating or understanding the proper amount of federal funds the Corporation will receive. Current Status 100% resolved Corrective Action Plan: Management acknowledged the importance of reporting grants properly for all accounting matters, especially Federal grants, to be compliant with Government agency, and accounting principles. Management has reviewed and revised our internal control for grant management. As such, new grants and contracts will be reviewed by branch/program managers as well as COO for compliance purposes. The project team, including project manager, support staff, financial staff and COO, will hold a kick-off meeting to go over the project type, the project's goals, expected outcomes and reporting. For any missing CFDA, the COO is responsible for identifying and searching using government database and other resources to find the information for reporting. All steps of verification are reflected in project briefs with initials by Project Manager, COO, Finance and HR team. Everyone is accountable for the accuracy and completeness of the information. A grant tracking sheet will also be reviewed per quarter.