Biotex,Inc

Condition: The Company did not timely submit the Single Audit Report to the National Heart, Lung, and Blood Institute for the year ended December 31, 2021. Criteria or specific requirement: According to the Uniform Guidance, recipients must submit a Single Audit Report or other applicable report that states whether the audit or examination was completed and provide information about the auditee, its federal programs, and the results of the audit or examination submitted within the earlier of 30 days after receipt of the auditor’s report, or nine months after the end of the audit period. Effect: The delay in filing resulted in non-compliance with regulatory requirements, this could impact affect future funding from various agencies. Cause: The Company received funds in response to the Coronavirus disease pandemic. There were no proper policies and procedures in place for federal award reporting, as the Company does not regularly receive federal funding.Recommendation: We recommend that a review of grant management documentation procedures to ensure controls are in place to support proper filing and reporting procedures for federal funding. Management’s view: Management agrees with the condition described. Proposed corrective action: This is the first time the company has been required to submit an audit and was new to this reporting requirement. Once we became aware of the requirement, we quickly remedied the situation; it has been documented as an extra step in our Grant management accounting process and will be complied with going forward. Anticipated correction date: This has been implemented effective August 2024. Responsible official: Ashok Gowda