FAC Explorer

Finding 597565 (2022-001)

Significant Deficiency Repeat Finding
Requirement
M
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 21643
Organization: Lehigh University (PA)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Lehigh University's Office of Research and Special Projects (ORSP) failed to review subrecipient compliance reports within the required six-month timeframe.
  • Impacted Requirements: This oversight violates 2 CFR 200.332(d), which mandates timely monitoring of subrecipients to ensure compliance with federal award terms.
  • Recommended Follow-Up: Strengthen processes to ensure compliance report reviews are completed on time to avoid jeopardizing future federal funding and maintain the university's reputation.

Finding Text

Finding 2022-001 Federal Agency: Various Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Year: Programs active between July 1, 2021 ? June 30, 2022 Compliance requirement: Subrecipient Monitoring Finding Type: Significant Deficiency Criteria In accordance with 2 CFR 200.332(d), all pass-through entities must: Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. Pass-through entity monitoring of the subrecipient must include: ? Reviewing financial and programmatic (performance and special reports) required by the pass-through entity (PTE). ? Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the federal award provided to the subrecipient from the PTE detected through audits, on-site reviews, and other means. ? Issuing a management decision for audit findings pertaining to the federal award provided to the subrecipient from the PTE as required by 2 CFR section 200.521. ? The pass-through entity is responsible for resolving audit findings specifically related to the subaward and not responsible for resolving crosscutting findings. If a subrecipient has a current Single Audit report posted in the Federal Audit Clearinghouse and has not otherwise been excluded from receipt of Federal funding (e.g., has been debarred or suspended), the pass-through entity may rely on the subrecipient?s cognizant audit agency or cognizant oversight agency to perform audit follow-up and make management decisions related to cross-cutting findings in accordance with section 2 CFR 200.513(a)(3)(vii). Such reliance does not eliminate the responsibility of the pass-through entity to issue subawards that conform to agency and award-specific requirements, to manage risk through ongoing subaward monitoring, and to monitor the status of the findings that are specifically related to the subaward. In accordance with 2 CFR 200.332(d), all pass-through entities must verify that every subrecipient is audited as required by Subpart F of 2 CFR 200.500 when it is expected that the subrecipient?s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 2 CFR 200.501. In accordance with 2 CFR 200.521(c) and (d): the pass-through entity must be responsible for issuing a management decision for audit findings that relate to Federal awards it makes to subrecipients. The Federal awarding agency or pass-through entity responsible for issuing a management decision must do so within six months of acceptance of the audit report by the Federal Audit Clearinghouse (FAC). In accordance with 2 CFR 200.501(h), since 2 CFR Part 200 does not make Subpart F applicable to for-profit subrecipients, the PTE is responsible for establishing requirements, as necessary, to ensure compliance by for-profit subrecipients for the subaward. The agreement with the for-profit subrecipient must describe applicable compliance requirements and the for-profit subrecipient?s compliance responsibility. Methods to ensure compliance for federal awards made to for-profit subrecipients may include pre-award audits, monitoring during the agreement, and post-award audits. Condition, including Perspective Lehigh University passed through $3,277,289 to its subrecipients in the research and development cluster (R&D cluster), which represents approximately 10% of total R&D cluster expenditures for the year ended June 30, 2022. As a pass-through entity, Lehigh University?s Office of Research and Special Projects (ORSP) is responsible for monitoring the activities and compliance of its subrecipients. Monitoring includes reviewing the compliance audit reports from its subrecipients as they become available through the federal audit clearinghouse to ascertain the existence of non-compliance and appropriate follow-up with the subrecipient to ensure timely and appropriate corrective action is taken to remediate the finding(s). Our procedures performed determined that the Office of Research and Special Projects (ORSP) did not complete the review of their compliance reports within six months of acceptance of the audit report by the FAC. Cause and Effect The ORSP lost two full time personnel in summer of 2020, one of whom was responsible for the review of the subrecipient compliance reports and issuing the management decision for any audit findings. That position was not filled until the December 2021 and no one else in ORSP completed these reviews during this timeframe. The lack of monitoring subrecipients timely could result in continuing to pass-through federal monies to a subrecipient who is not in compliance with federal compliance. Noncompliance by a subrecipient that is not identified and addressed timely could jeopardize the University?s receipt of future federal awards and public reputation. Questioned Costs No questioned costs were identified. Statistical Sample The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding Yes, finding 2021-001 Recommendation We recommend that Lehigh University strengthen its processes and controls to ensure the review of its subrecipient?s compliance reports is completed within six months of acceptance of the audit report by the FAC. Views of Responsible Officials Lehigh University accepts this finding. The review of fiscal year 2022 has been conducted and is complete for the review of those institutions who have submitted their audit reports to the Federal Audit Clearinghouse.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 21030 2022-001
    Significant Deficiency Repeat
  • 21031 2022-001
    Significant Deficiency Repeat
  • 21032 2022-001
    Significant Deficiency Repeat
  • 21033 2022-001
    Significant Deficiency Repeat
  • 21034 2022-001
    Significant Deficiency Repeat
  • 21035 2022-001
    Significant Deficiency Repeat
  • 21036 2022-001
    Significant Deficiency Repeat
  • 21037 2022-001
    Significant Deficiency Repeat
  • 21038 2022-001
    Significant Deficiency Repeat
  • 21039 2022-001
    Significant Deficiency Repeat
  • 21040 2022-001
    Significant Deficiency Repeat
  • 21041 2022-001
    Significant Deficiency Repeat
  • 21042 2022-001
    Significant Deficiency Repeat
  • 21043 2022-001
    Significant Deficiency Repeat
  • 21044 2022-001
    Significant Deficiency Repeat
  • 21045 2022-001
    Significant Deficiency Repeat
  • 21046 2022-001
    Significant Deficiency Repeat
  • 21047 2022-001
    Significant Deficiency Repeat
  • 21048 2022-001
    Significant Deficiency Repeat
  • 21049 2022-001
    Significant Deficiency Repeat
  • 21050 2022-001
    Significant Deficiency Repeat
  • 21051 2022-001
    Significant Deficiency Repeat
  • 21052 2022-001
    Significant Deficiency Repeat
  • 21053 2022-001
    Significant Deficiency Repeat
  • 21054 2022-001
    Significant Deficiency Repeat
  • 21055 2022-001
    Significant Deficiency Repeat
  • 21056 2022-001
    Significant Deficiency Repeat
  • 21057 2022-001
    Significant Deficiency Repeat
  • 21058 2022-001
    Significant Deficiency Repeat
  • 21059 2022-001
    Significant Deficiency Repeat
  • 21060 2022-001
    Significant Deficiency Repeat
  • 21061 2022-001
    Significant Deficiency Repeat
  • 21062 2022-001
    Significant Deficiency Repeat
  • 21063 2022-001
    Significant Deficiency Repeat
  • 21064 2022-001
    Significant Deficiency Repeat
  • 21065 2022-001
    Significant Deficiency Repeat
  • 21066 2022-001
    Significant Deficiency Repeat
  • 21067 2022-001
    Significant Deficiency Repeat
  • 21068 2022-001
    Significant Deficiency Repeat
  • 21069 2022-001
    Significant Deficiency Repeat
  • 21070 2022-001
    Significant Deficiency Repeat
  • 21071 2022-001
    Significant Deficiency Repeat
  • 21072 2022-001
    Significant Deficiency Repeat
  • 21073 2022-001
    Significant Deficiency Repeat
  • 21074 2022-001
    Significant Deficiency Repeat
  • 21075 2022-001
    Significant Deficiency Repeat
  • 21076 2022-001
    Significant Deficiency Repeat
  • 21077 2022-001
    Significant Deficiency Repeat
  • 21078 2022-001
    Significant Deficiency Repeat
  • 21079 2022-001
    Significant Deficiency Repeat
  • 21080 2022-001
    Significant Deficiency Repeat
  • 21081 2022-001
    Significant Deficiency Repeat
  • 21082 2022-001
    Significant Deficiency Repeat
  • 21083 2022-001
    Significant Deficiency Repeat
  • 21084 2022-001
    Significant Deficiency Repeat
  • 21085 2022-001
    Significant Deficiency Repeat
  • 21086 2022-001
    Significant Deficiency Repeat
  • 21087 2022-001
    Significant Deficiency Repeat
  • 21088 2022-001
    Significant Deficiency Repeat
  • 21089 2022-001
    Significant Deficiency Repeat
  • 21090 2022-001
    Significant Deficiency Repeat
  • 21091 2022-001
    Significant Deficiency Repeat
  • 21092 2022-001
    Significant Deficiency Repeat
  • 21093 2022-001
    Significant Deficiency Repeat
  • 21094 2022-001
    Significant Deficiency Repeat
  • 21095 2022-001
    Significant Deficiency Repeat
  • 21096 2022-001
    Significant Deficiency Repeat
  • 21097 2022-001
    Significant Deficiency Repeat
  • 21098 2022-001
    Significant Deficiency Repeat
  • 21099 2022-001
    Significant Deficiency Repeat
  • 21100 2022-001
    Significant Deficiency Repeat
  • 21101 2022-001
    Significant Deficiency Repeat
  • 21102 2022-001
    Significant Deficiency Repeat
  • 21103 2022-001
    Significant Deficiency Repeat
  • 21104 2022-001
    Significant Deficiency Repeat
  • 21105 2022-001
    Significant Deficiency Repeat
  • 21106 2022-001
    Significant Deficiency Repeat
  • 21107 2022-001
    Significant Deficiency Repeat
  • 21108 2022-001
    Significant Deficiency Repeat
  • 21109 2022-001
    Significant Deficiency Repeat
  • 21110 2022-001
    Significant Deficiency Repeat
  • 21111 2022-001
    Significant Deficiency Repeat
  • 21112 2022-001
    Significant Deficiency Repeat
  • 21113 2022-001
    Significant Deficiency Repeat
  • 21114 2022-001
    Significant Deficiency Repeat
  • 21115 2022-001
    Significant Deficiency Repeat
  • 21116 2022-001
    Significant Deficiency Repeat
  • 21117 2022-001
    Significant Deficiency Repeat
  • 21118 2022-001
    Significant Deficiency Repeat
  • 21119 2022-001
    Significant Deficiency Repeat
  • 21120 2022-001
    Significant Deficiency Repeat
  • 21121 2022-001
    Significant Deficiency Repeat
  • 21122 2022-001
    Significant Deficiency Repeat
  • 21123 2022-001
    Significant Deficiency Repeat
  • 21124 2022-001
    Significant Deficiency Repeat
  • 21125 2022-001
    Significant Deficiency Repeat
  • 21126 2022-001
    Significant Deficiency Repeat
  • 21127 2022-001
    Significant Deficiency Repeat
  • 21128 2022-001
    Significant Deficiency Repeat
  • 21129 2022-001
    Significant Deficiency Repeat
  • 21130 2022-001
    Significant Deficiency Repeat
  • 21131 2022-001
    Significant Deficiency Repeat
  • 21132 2022-001
    Significant Deficiency Repeat
  • 21133 2022-001
    Significant Deficiency Repeat
  • 21134 2022-001
    Significant Deficiency Repeat
  • 21135 2022-001
    Significant Deficiency Repeat
  • 21136 2022-001
    Significant Deficiency Repeat
  • 21137 2022-001
    Significant Deficiency Repeat
  • 21138 2022-002
    Significant Deficiency Repeat
  • 597472 2022-001
    Significant Deficiency Repeat
  • 597473 2022-001
    Significant Deficiency Repeat
  • 597474 2022-001
    Significant Deficiency Repeat
  • 597475 2022-001
    Significant Deficiency Repeat
  • 597476 2022-001
    Significant Deficiency Repeat
  • 597477 2022-001
    Significant Deficiency Repeat
  • 597478 2022-001
    Significant Deficiency Repeat
  • 597479 2022-001
    Significant Deficiency Repeat
  • 597480 2022-001
    Significant Deficiency Repeat
  • 597481 2022-001
    Significant Deficiency Repeat
  • 597482 2022-001
    Significant Deficiency Repeat
  • 597483 2022-001
    Significant Deficiency Repeat
  • 597484 2022-001
    Significant Deficiency Repeat
  • 597485 2022-001
    Significant Deficiency Repeat
  • 597486 2022-001
    Significant Deficiency Repeat
  • 597487 2022-001
    Significant Deficiency Repeat
  • 597488 2022-001
    Significant Deficiency Repeat
  • 597489 2022-001
    Significant Deficiency Repeat
  • 597490 2022-001
    Significant Deficiency Repeat
  • 597491 2022-001
    Significant Deficiency Repeat
  • 597492 2022-001
    Significant Deficiency Repeat
  • 597493 2022-001
    Significant Deficiency Repeat
  • 597494 2022-001
    Significant Deficiency Repeat
  • 597495 2022-001
    Significant Deficiency Repeat
  • 597496 2022-001
    Significant Deficiency Repeat
  • 597497 2022-001
    Significant Deficiency Repeat
  • 597498 2022-001
    Significant Deficiency Repeat
  • 597499 2022-001
    Significant Deficiency Repeat
  • 597500 2022-001
    Significant Deficiency Repeat
  • 597501 2022-001
    Significant Deficiency Repeat
  • 597502 2022-001
    Significant Deficiency Repeat
  • 597503 2022-001
    Significant Deficiency Repeat
  • 597504 2022-001
    Significant Deficiency Repeat
  • 597505 2022-001
    Significant Deficiency Repeat
  • 597506 2022-001
    Significant Deficiency Repeat
  • 597507 2022-001
    Significant Deficiency Repeat
  • 597508 2022-001
    Significant Deficiency Repeat
  • 597509 2022-001
    Significant Deficiency Repeat
  • 597510 2022-001
    Significant Deficiency Repeat
  • 597511 2022-001
    Significant Deficiency Repeat
  • 597512 2022-001
    Significant Deficiency Repeat
  • 597513 2022-001
    Significant Deficiency Repeat
  • 597514 2022-001
    Significant Deficiency Repeat
  • 597515 2022-001
    Significant Deficiency Repeat
  • 597516 2022-001
    Significant Deficiency Repeat
  • 597517 2022-001
    Significant Deficiency Repeat
  • 597518 2022-001
    Significant Deficiency Repeat
  • 597519 2022-001
    Significant Deficiency Repeat
  • 597520 2022-001
    Significant Deficiency Repeat
  • 597521 2022-001
    Significant Deficiency Repeat
  • 597522 2022-001
    Significant Deficiency Repeat
  • 597523 2022-001
    Significant Deficiency Repeat
  • 597524 2022-001
    Significant Deficiency Repeat
  • 597525 2022-001
    Significant Deficiency Repeat
  • 597526 2022-001
    Significant Deficiency Repeat
  • 597527 2022-001
    Significant Deficiency Repeat
  • 597528 2022-001
    Significant Deficiency Repeat
  • 597529 2022-001
    Significant Deficiency Repeat
  • 597530 2022-001
    Significant Deficiency Repeat
  • 597531 2022-001
    Significant Deficiency Repeat
  • 597532 2022-001
    Significant Deficiency Repeat
  • 597533 2022-001
    Significant Deficiency Repeat
  • 597534 2022-001
    Significant Deficiency Repeat
  • 597535 2022-001
    Significant Deficiency Repeat
  • 597536 2022-001
    Significant Deficiency Repeat
  • 597537 2022-001
    Significant Deficiency Repeat
  • 597538 2022-001
    Significant Deficiency Repeat
  • 597539 2022-001
    Significant Deficiency Repeat
  • 597540 2022-001
    Significant Deficiency Repeat
  • 597541 2022-001
    Significant Deficiency Repeat
  • 597542 2022-001
    Significant Deficiency Repeat
  • 597543 2022-001
    Significant Deficiency Repeat
  • 597544 2022-001
    Significant Deficiency Repeat
  • 597545 2022-001
    Significant Deficiency Repeat
  • 597546 2022-001
    Significant Deficiency Repeat
  • 597547 2022-001
    Significant Deficiency Repeat
  • 597548 2022-001
    Significant Deficiency Repeat
  • 597549 2022-001
    Significant Deficiency Repeat
  • 597550 2022-001
    Significant Deficiency Repeat
  • 597551 2022-001
    Significant Deficiency Repeat
  • 597552 2022-001
    Significant Deficiency Repeat
  • 597553 2022-001
    Significant Deficiency Repeat
  • 597554 2022-001
    Significant Deficiency Repeat
  • 597555 2022-001
    Significant Deficiency Repeat
  • 597556 2022-001
    Significant Deficiency Repeat
  • 597557 2022-001
    Significant Deficiency Repeat
  • 597558 2022-001
    Significant Deficiency Repeat
  • 597559 2022-001
    Significant Deficiency Repeat
  • 597560 2022-001
    Significant Deficiency Repeat
  • 597561 2022-001
    Significant Deficiency Repeat
  • 597562 2022-001
    Significant Deficiency Repeat
  • 597563 2022-001
    Significant Deficiency Repeat
  • 597564 2022-001
    Significant Deficiency Repeat
  • 597566 2022-001
    Significant Deficiency Repeat
  • 597567 2022-001
    Significant Deficiency Repeat
  • 597568 2022-001
    Significant Deficiency Repeat
  • 597569 2022-001
    Significant Deficiency Repeat
  • 597570 2022-001
    Significant Deficiency Repeat
  • 597571 2022-001
    Significant Deficiency Repeat
  • 597572 2022-001
    Significant Deficiency Repeat
  • 597573 2022-001
    Significant Deficiency Repeat
  • 597574 2022-001
    Significant Deficiency Repeat
  • 597575 2022-001
    Significant Deficiency Repeat
  • 597576 2022-001
    Significant Deficiency Repeat
  • 597577 2022-001
    Significant Deficiency Repeat
  • 597578 2022-001
    Significant Deficiency Repeat
  • 597579 2022-001
    Significant Deficiency Repeat
  • 597580 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $20.67M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $6.90M
84.063 Federal Pell Grant Program $5.20M
84.038 Fereral Perkins Loans Programs $1.54M
84.324 Research in Special Education $1.39M
11.478 Center for Sponsored Coastal Ocean Research_coastal Ocean Program $853,348
84.033 Federal Work-Study Program $693,000
84.007 Federal Supplemental Educational Opportunity Grants $584,440
59.075 Shuttered Venue Operators Grant Program $522,308
93.310 Trans-Nih Research Support $501,698
12.800 Air Force Defense Research Sciences Program $488,636
93.837 Cardiovascular Diseases Research $382,163
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $359,603
93.173 Research Related to Deafness and Communication Disorders $354,181
45.130 Promotion of the Humanities_challenge Grants $333,301
81.089 Fossil Energy Research and Development $301,137
20.701 University Transportation Centers Program $298,777
81.135 Advanced Research Projects Agency - Energy $229,261
93.855 Allergy, Immunology and Transplantation Research $182,167
12.300 Basic and Applied Scientific Research $128,159
47.041 Engineering $125,393
81.087 Renewable Energy Research and Development $121,270
81.057 University Coal Research $110,722
93.867 Vision Research $103,253
84.425 Education Stabilization Fund $103,168
12.431 Basic Scientific Research $84,735
93.279 Drug Abuse and Addiction Research Programs $75,208
12.002 Procurement Technical Assistance for Business Firms $75,201
47.079 Office of International Science and Engineering $73,263
47.070 Computer and Information Science and Engineering $70,782
81.049 Office of Science Financial Assistance Program $69,536
93.121 Oral Diseases and Disorders Research $67,613
47.049 Mathematical and Physical Sciences $67,230
93.273 Alcohol Research Programs $64,129
93.350 National Center for Advancing Translational Sciences $63,567
15.506 Water Desalination Research and Development Program $60,018
45.160 Promotion of the Humanities_fellowships and Stipends $57,181
59.037 Small Business Development Centers $57,004
47.076 Education and Human Resources $56,721
93.865 Child Health and Human Development Extramural Research $54,030
93.859 Biomedical Research and Research Training $49,339
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $46,697
19.009 Academic Exchange Programs - Undergraduate Programs $40,313
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $40,127
84.305 Education Research, Development and Dissemination $39,768
11.011 Ocean Exploration $37,432
47.083 Integrative Activities $35,009
93.866 Aging Research $34,974
12.630 Basic, Applied, and Advanced Research in Science and Engineering $33,029
43.001 Science $30,752
11.451 Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology $28,884
45.161 Promotion of the Humanities_research $25,385
12.910 Research and Technology Development $24,327
93.600 Head Start $23,520
47.074 Biological Sciences $20,591
19.900 Aeeca/esf Pd Programs $20,181
84.367 Improving Teacher Quality State Grants $17,059
93.395 Cancer Treatment Research $12,415
20.931 Transportation Planning, Research and Education $11,155
93.839 Blood Diseases and Resources Research $11,008
10.310 Agriculture and Food Research Initiative (afri) $10,256
47.050 Geosciences $10,081
45.301 Museums for America $9,995
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $9,374
43.008 Education $8,049
45.312 National Leadership Grants $6,103
93.307 Minority Health and Health Disparities Research $5,826
45.025 Promotion of the Arts_partnership Agreements $3,671
47.075 Social, Behavioral, and Economic Sciences $3,242
45.129 Promotion of the Humanities_federal/state Partnership $1,871
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $265