EIN: 522337019
UEI: PS4UVEN825F3
Audited by: Johnson Lambert LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 23, 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 March 23, 2025 (530 days ago).
What is a management decision? →Management had existing controls related to subrecipient monitoring. However, these controls were not sufficiently detailed relative to the collection of audited financial statements and eligibility to receive funding. During 2023, for one subrecipient, HESI did not retain evidence of the review performed of the subrecipient’s eligibility to receive funding and did not retain evidence of the monitoring of the subrecipient’s audited financial statements. Cause: Due to a lack of policies and procedures regarding retention of documentation for subrecipient monitoring. Effect: Failed to comply with compliance supplement requirements related to subrecipient monitoring. Questioned Costs: There were no material questioned costs identified. Context: For the subrecipient chosen for testing in 2023, no evidence of monitoring the subrecipient’s eligibility to receive funding and audited financial statements was retained. Repeat Finding: No. Recommendation: We recommend that management establish procedures to ensure subrecipient monitoring requirements have appropriate supporting documentation retained. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.
Show full finding ▾Hide full finding ▴Finding 2023-001: Material Weakness over Subrecipient Monitoring Information on the Federal Program: Food and Drug Administration Research, CFDA 93.103 Criteria: The Uniform Guidance requires organizations to establish internal controls to detect potential noncompliance. Condition: Management had existing controls related to subrecipient monitoring. However, these controls were not sufficiently detailed relative to the collection of audited financial statements and eligibility to receive funding. During 2023, for one subrecipient, HESI did not retain evidence of the review performed of the subrecipient’s eligibility to receive funding and did not retain evidence of the monitoring of the subrecipient’s audited financial statements. Cause: Due to a lack of policies and procedures regarding retention of documentation for subrecipient monitoring. Effect: Failed to comply with compliance supplement requirements related to subrecipient monitoring. Questioned Costs: There were no material questioned costs identified. Context: For the subrecipient chosen for testing in 2023, no evidence of monitoring the subrecipient’s eligibility to receive funding and audited financial statements was retained. Repeat Finding: No. Recommendation: We recommend that management establish procedures to ensure subrecipient monitoring requirements have appropriate supporting documentation retained. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.
Finding 2023-001: Material Weakness over Subrecipient Monitoring and Required Filings The Uniform Guidance requires organizations to establish internal controls to detect potential noncompliance. Management had existing controls related to subrecipient monitoring. However, these controls were not sufficiently detailed relative to the collection of audited financial statements and eligibility to receive funding. During 2023, for one subrecipient, HESI did not retain evidence of the review performed of the subrecipient’s eligibility to receive funding and did not retain evidence of the monitoring of the subrecipient’s audited financial statements. Planned Corrective Action: The subrecipient’s audited financial statements and Report on Federal Awards in accordance with Uniform Guidance were subsequently requested and reviewed in September 2024. Procedures have been put in place to ensure that subrecipients are eligible to receive Federal funding and a subrecipient’s audited financial statements and compliance reports will be requested and reviewed annually. Name and Person Responsible: Beth-Ellen Berry, Chief Financial Officer Anticipated Completion Date: September 3, 2024
HESI did not timely file the required FFATA report for a subrecipient receiving direct federal awards in excess of $30,000. Cause: Due to a lack of controls surrounding the monitoring of FFATA reporting for subrecipients. Effect: Failed to comply with compliance supplement requirements related to FFATA filing. Questioned Costs: There were no material questioned costs identified. Context: For 2023, the FFATA report not filed timely represents 100% of the total population of those reports. Repeat Finding: No. Recommendation: We recommend management establish a control to identify when FFATA reporting is needed and to ensure the respective reports are filed on a timely basis. This can be done as a part of their existing subrecipient monitoring checklist. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.
Show full finding ▾Hide full finding ▴Finding 2023-002: Material Weakness over Subrecipient Reporting Information on the Federal Program: Food and Drug Administration Research, CFDA 93.103 Criteria: Federal Funding Accountability and Transparency Act (FFATA) reports are required to be filed for subrecipients receiving direct awards in excess of $30,000 by the end of the month following the month the award is given. Condition: HESI did not timely file the required FFATA report for a subrecipient receiving direct federal awards in excess of $30,000. Cause: Due to a lack of controls surrounding the monitoring of FFATA reporting for subrecipients. Effect: Failed to comply with compliance supplement requirements related to FFATA filing. Questioned Costs: There were no material questioned costs identified. Context: For 2023, the FFATA report not filed timely represents 100% of the total population of those reports. Repeat Finding: No. Recommendation: We recommend management establish a control to identify when FFATA reporting is needed and to ensure the respective reports are filed on a timely basis. This can be done as a part of their existing subrecipient monitoring checklist. Views of Responsible Officials and Planned Corrective Action: See management's response at the Corrective Action Plan on page 30.
Finding 2023-002: Material Weakness over Subrecipient Reporting Federal Funding Accountability and Transparency Act (FFATA) reports are required to be filed for subrecipients receiving direct awards in excess of $30,000 by the end of the month following the month the award is given. HESI did not timely file the required FFATA report for a subrecipient receiving direct federal awards in excess of $30,000. Planned Corrective Action: The FFATA report was subsequently filed in April 2024. Procedures have been put in place to ensure that the form will be filed in a timely manner and in accordance with all filing requirements. Name and Person Responsible: Beth-Ellen Berry, Chief Financial Officer Anticipated Completion Date: September 3, 2024
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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