Accession Number : ADA559118


Title :   Report on Quality Control Review of the Raich Ende Malter & Co. LLP FY 2009 Single Audit of the Riverside Research Institute


Descriptive Note : Audit rept.


Corporate Author : DEPARTMENT OF DEFENSE ALEXANDRIA VA OFFICE OF THE INSPECTOR GENERAL


Personal Author(s) : Stone, Randolph R


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a559118.pdf


Report Date : 07 Mar 2012


Pagination or Media Count : 17


Abstract : Riverside Research Institute, located in New York City, is a nonprofit organization engaged in scientific and engineering research. Substantially all revenue is derived from contracts with United States Government agencies. The Institute expended $69 million in Federal awards for the fiscal year ended November 30, 2009, under one Federal program, the research and development (R&D) cluster. Of the $69 million, $30.1 million was expended for Department of Defense programs. Raich Ende Malter & Co. LLP failed to perform, document, and report on the FY 2009 audit of Federal programs in accordance with auditing standards and Circular A-133 audit and reporting requirements (Findings A and B). Raiche Ende and Malter audit of internal control and compliance was based on a determination that 10 of the 14 compliance requirements were applicable to the Institute. However, the audit working papers for all 14 of the compliance requirements were not adequate to support conclusions on applicability, internal control, and the audit opinion on compliance with laws, regulations, and award provisions applicable to the R&D cluster program. In addition, the audit firm did not appropriately report an audit finding disclosed in the audit. Because of these audit deficiencies, Federal agencies cannot rely on the audit report for assurance that the Institute managed Federal awards in compliance with laws, regulations, and award provisions. Riverside Research Institute did not have an understanding of the requirements for preparing the Schedule of Expenditures of Federal Awards. The Schedule provided to the audit firm may not have appropriately identified and classified all Federal and pass-through awards in the R&D cluster. Because the audit firm did not perform appropriate procedures to verify the award information in the Schedule, there is no assurance that the single audit covered all Federal awards expended or administered by the Institute in FY 2009. The audit needs to be re-performed.


Descriptors :   *AUDITING , *CORPORATIONS , *DEFICIENCIES , *QUALITY CONTROL , *REQUIREMENTS , *STANDARDS , AWARDS , CONTRACTS , DEPARTMENT OF DEFENSE , FEDERAL LAW , MILITARY RESEARCH , REGULATIONS , VERIFICATION


Subject Categories : Administration and Management
      Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE