Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution
Preparation of the Consolidated Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance - Other
Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (the Schedule) and the accompanying notes to the Schedule.
Condition: Management prepared the Schedule for the year ended June 30, 2023. During the audit process, changes were proposed to increase the amount reported related to the COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution program.
Cause: Controls that were in place did not detect a misstatement to the Schedule.
Effect: There is a reasonable possibility that misstatements to the Schedule may not be prevented and detected in a timely fashion.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the preparation of the Schedule.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #93.697
COVID-19 Testing and Mitigation for Rural Health Clinics
Period of Performance
Significant Deficiency in Internal Control over Compliance
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs and period of performance identified one expenditure that fell outside of the period of performance under the grant and two expenditures that did not agree to supporting documentation.
Cause: There was a lapse in oversight of the internal control process ensuring the expenditures allowed under the grant did not fall outside of the period of performance for the grant and agree to supporting documentation.
Effect: The Organization’s control did not detect or correct the errors identified, which resulted in expenditures being allocated to the federal award that were outside of the period of performance and did not agree to supporting documentation.
Questioned Costs: None reported.
Context: A non-statistical sample of 60 transactions was selected for testing, which accounted for $1,019,224 of $2,100,000 of federal program expenditures. One expenditure was outside of the period of performance and two did not agree to supporting documentation.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the expenditures being claimed under the grant and ensuring the expenditures are within the proper period of performance and agree to supporting documentation.
Views of Responsible Officials: Management agrees with the finding.
Department of Homeland Security
Federal Financial Assistance Listing #97.036
Disaster Grants - Public Assistance
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where the internal control process failed to identify that the grant was charged at a rate of pay higher than the employee’s hourly approved rate of pay.
Cause: There was a lapse in oversight of the internal control process ensuring an inaccurate rate of pay for an employee’s time being charged to the grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: None reported.
Context: A non-statistical sample of 34 transactions was selected for testing, which accounted for $3,450,395 of $9,388,052 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the expenditures being claimed under the grant to ensure payroll is being accurately charged using the correct rate of pay for employees.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified four instances where the supporting documentation did not agree with the expenditures claimed in the expenditure listing for the program.
Cause: There was a lapse in oversight of the internal control process ensuring the expenditures claimed in the special report to HHS agreed to supporting documentation.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: None Reported
Context: A non-statistical sample of 60 transactions was selected for testing, which accounted for $7,563,126 of $20,267,798 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the expenditure listings used to prepare the special reports submitted to HHS.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution
Preparation of the Consolidated Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance - Other
Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (the Schedule) and the accompanying notes to the Schedule.
Condition: Management prepared the Schedule for the year ended June 30, 2023. During the audit process, changes were proposed to increase the amount reported related to the COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution program.
Cause: Controls that were in place did not detect a misstatement to the Schedule.
Effect: There is a reasonable possibility that misstatements to the Schedule may not be prevented and detected in a timely fashion.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the preparation of the Schedule.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #93.697
COVID-19 Testing and Mitigation for Rural Health Clinics
Period of Performance
Significant Deficiency in Internal Control over Compliance
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs and period of performance identified one expenditure that fell outside of the period of performance under the grant and two expenditures that did not agree to supporting documentation.
Cause: There was a lapse in oversight of the internal control process ensuring the expenditures allowed under the grant did not fall outside of the period of performance for the grant and agree to supporting documentation.
Effect: The Organization’s control did not detect or correct the errors identified, which resulted in expenditures being allocated to the federal award that were outside of the period of performance and did not agree to supporting documentation.
Questioned Costs: None reported.
Context: A non-statistical sample of 60 transactions was selected for testing, which accounted for $1,019,224 of $2,100,000 of federal program expenditures. One expenditure was outside of the period of performance and two did not agree to supporting documentation.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the expenditures being claimed under the grant and ensuring the expenditures are within the proper period of performance and agree to supporting documentation.
Views of Responsible Officials: Management agrees with the finding.
Department of Homeland Security
Federal Financial Assistance Listing #97.036
Disaster Grants - Public Assistance
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where the internal control process failed to identify that the grant was charged at a rate of pay higher than the employee’s hourly approved rate of pay.
Cause: There was a lapse in oversight of the internal control process ensuring an inaccurate rate of pay for an employee’s time being charged to the grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: None reported.
Context: A non-statistical sample of 34 transactions was selected for testing, which accounted for $3,450,395 of $9,388,052 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the expenditures being claimed under the grant to ensure payroll is being accurately charged using the correct rate of pay for employees.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #10.331, 93.136, 93.243, 93.279, 93.310, 93.393, 93.837, 93.838, 93.865, and 93.898
Research and Development Cluster
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance and Noncompliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified one instance where an employee’s time was not properly allocated between two grants. Additionally, there were four instances where the grant was under/over-charged in our recalculation of payroll and fringe benefits.
Cause: The Organization changed the process for physician time in research grants which was initially in place for Medical Directorship payments. The grant team updated to a separate grant workflow which caused for the time to be allocated to the incorrect grant.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: $2,126
Context: A non-statistical sample of 60 payroll transactions was selected for testing, which accounted for $152,356 of $3,424,036 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the allocation calculation for the research grants.
Views of Responsible Officials: Management agrees with the finding.
Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Our testing over activities allowed and allowable costs identified four instances where the supporting documentation did not agree with the expenditures claimed in the expenditure listing for the program.
Cause: There was a lapse in oversight of the internal control process ensuring the expenditures claimed in the special report to HHS agreed to supporting documentation.
Effect: The Organization’s controls did not detect or correct the error identified, which resulted in a reasonable possibility that the Organization could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: None Reported
Context: A non-statistical sample of 60 transactions was selected for testing, which accounted for $7,563,126 of $20,267,798 of federal program expenditures.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Organization review and strengthen the controls surrounding the expenditure listings used to prepare the special reports submitted to HHS.
Views of Responsible Officials: Management agrees with the finding.