Delaware Academy of Medicine, Inc.

EIN: 510075162

UEI: MFXFFJQ5A2A5

Data as of August 19, 2026

3
Audit Years
5
Total Findings
2
Repeat Findings

FY 2024-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on April 8, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 8, 2026 (49 days from today).

What is a management decision? →
2024-001
Activities Allowed or Unallowed / Cost Allowability
REPEATMATERIAL WEAKNESSQUESTIONED COSTS
Condition

Condition: For the year ended December 31, 2024, the Academy’s allowable indirect costs were limited to $677,264 based on total modified direct costs. Based on results of procedures, $265,687 of indirect costs were charged to the grant during the year ended December 31, 2024. Criteria: The Academy correctly embedded a 10% allowable rate in its contract. However, as defined by 2 CFR Section 200, total modified direct costs equal total direct costs less all but $25,000 of subawards (regardless of the period of performance of the subaward). Cause: The Academy did not properly calculate allowable indirect costs under the grant award during the year ended December 31, 2024. Effect: Amounts charged to the contract exceed allowable costs by $197,961, prior to correction. Recommendation: Management should develop procedures to calculate allowable indirect costs under its awards.

Corrective Action Plan

The Academy learned of deficiencies pertaining to allowable indirect costs during the 2024 calendar year, at which time, after consultation with the funder, changes were made to the policies for calculation of indirect costs for the grant.

Prior Finding References

2023-002

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2023-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on November 20, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by May 20, 2025, which was (457 days ago).

What is a management decision? →
2023-002
Activities Allowed or Unallowed / Cost Allowability
REPEATMATERIAL WEAKNESSQUESTIONED COSTS
Condition

Condition: For the year ended December 31, 2023, the Academy’s allowable indirect costs were limited to $33,237 based on total modified direct costs. Based on results of audit procedures performed, $97,368 of indirect costs were charged to the grant during the year ended December 31, 2023. Criteria: The Academy embedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. As a result, the Academy’s indirect costs were limited to 7.5% of total modified direct costs. As defined by 2 CFR Section 200, total modified direct costs equal total direct costs less all but $25,000 of subawards (regardless of the period of performance of the subaward). Cause: The Academy did not properly calculate allowable indirect costs under the grant award during the year ended December 31, 2023. Effect: Amounts charged to the contract exceeded allowable costs by $64,130. Recommendation: Management should develop procedures to calculate allowable indirect costs under its awards.

Corrective Action Plan

The Academy will ensure that only eligible expenses are included in the overhead calculation and that other rules and limitations are adhered to. The Academy increased the overhead rate to 10% default rate after learning of this overhead rule during the 2022 audit (mid-2023).

Prior Finding References

2022-002

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2022-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on March 20, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 20, 2024, which was (699 days ago).

What is a management decision? →
2022-001
Activities Allowed or Unallowed
MATERIAL WEAKNESSQUESTIONED COSTS
Condition

The Academy did not identify its DHHS-HRSA grant passed through the Public Health Management Corporation as Federally sourced and subject to 2 CFR Section 200 which dictates allowable and unallowable costs. This resulted in the Academy applying for reimbursement for costs of approximately $138,685 which were not allowable. $67,823 was immediately reimbursed.

Corrective Action Plan

In the exploratory phase of applying for a new grant, the Executive Director will ascertain whether or not the source of funding is Federal. The Executive Director will be assisted in this responsibility by a professional accountant that has been retained from an accounting firm. Where any doubt exists, the funding partner will be contacted to confirm their perspective.

About Activities Allowed or Unallowed →
2022-002
Activities Allowed or Unallowed
MATERIAL WEAKNESSQUESTIONED COSTS
Condition

The Academy charged direct payroll costs to the grant. While the costs appeared reasonable and were included in the budget for the grant, not all were supported by specific documentation. While it is logical and likely that the specific costs were incurred in furtherance of the program, we did not note specific documentation supporting that determination. A total of $36,378 of payroll did not have specific documentation. No adjustment was posted as due since it is unlikely the time was charged inappropriately.

Corrective Action Plan

Formal timesheets will be prepared and approved consistent with the payroll cycle, documenting the time spent on Federal grants and on other areas. The professional accountant retained by the Academy will be tasked with this responsibility under the supervision of the Executive Director.

About Activities Allowed or Unallowed →
2022-003
Activities Allowed or Unallowed
MATERIAL WEAKNESSQUESTIONED COSTS
Condition

The Academy did not correctly calulate the allowable amount of overhead charged to each of its major Federal grants. In the case of the ARPA funding,the Academy emmbedded a 7.5% allowable overhead rate in its contract. The default 10% rate was superseded by this provision. Additionally, in both contracts major vendors and subcontractors were included at their full amount rather than limiting the includable amount to $25,000 as required by 2 CFR Section 200. This resulted in overcharges totaling $24,384.

Corrective Action Plan

The Academy will undertake the following actions to ensure compliance in this area: For the immediate future, the Academy will ensure that only eligible expenses are included in the overhead calculation and that other rules and limitations are adhered to. The Academy will then submit a revision to its ARPA agreement allowing it to increase its overhead rate to the 10% default rate. Lastly, the Academy will gather the information needed to apply for an individual rate based on its specific cost structure. The Executive Director will supervise the professional accountant in this effort.

About Activities Allowed or Unallowed →

Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.

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