Audit 318675

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-002 Immunization Cooperative Agreements, ALN #93.268 Criteria: According to 2 CFR Section 200.305(b)(3), all reimbursement requests should be based on supporting documentation that shows the cost was incurred before the request for payment and that the payment to vendor was made. Condition: 4 of the 7 cash drawdown reports tested contained expense reimbursements requested for which there was missing supporting documentation for some of the expenses requested for reimbursements. Total questioned costs were $115,617. Cause: The extra expenses that were missing in the test were because IAFP used staff instead of consultants and the Organization did not update our policies and procedures to include time sheets to show how staff was allocated to the grant to support the charges. Effect: The effect is that the Organization requested funds but did not have back up to support that the actual expenses were incurred and was therefore not in compliance with the cash management requirements under Uniform Grant Guidance in relation reimbursement requests. Auditor recommendation: We recommend that the accounting department verify that the expense has been incurred and paid to the vendor before requesting reimbursement from the grantor and ensure that the backup documentation is filed where it can be located. We recommend hiring or training staff in relation to cash management and documentation of allowable cost. Management response: Management will follow the advice and undergo training in cash management and documentation of allowable costs.

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-003 Immunization Cooperative Agreements, ALN #93.268 Criteria: According to 2 CFR 200.430 i(i)(vii) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and there should be support to the distributions of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award. Condition: In gaining our understanding of controls over allowable costs for payroll, we noted that the Organization did not have proper documentation of time and effort analysis to support charges to the grants. Cause: The Organization used the grant budget to charge salaries to the grant but did not have any documentation showing an analysis of actual time worked on those grants. Effect: The hours charged to a program could be under stated or overstated if the actual hours differed from the grant budget hours. Auditor’s Recommendation: We recommend implementing the use of time sheets with grants or personnel activity reports that document actual hours worked by personnel on each grant. Management Response: Management will implement time sheets for all employees that work on grants that specify what grants they are working on, number of hours for each for all payrolls in 2024 to correct this problem going forward. In addition, the timesheets will include what functions those

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-004 Immunization Cooperative Agreements, ALN #93.268 Criteria: According to 2 CFR Section 200.308, all budget revisions over 10% must receive a budget revision from the grantee. Condition: Following a budget revision of over 10%, an approval was not received from the grantee. Cause: At direction from the pass-through agency, the Organization charged salary expenses to the contract services line items on its request reimbursement instead of getting budget revisions to reflect the change in the work performed. Effect: The costs billed on the vouchers for reimbursement, did not match the natural classification of the actual expenses incurred on the grant resulting in expenses reported being over budget on certain line items and under budget on others. Auditor recommendation: We recommend that when there is a budget revision over 10%, the Organization works with the grantor to get formal documentation to support the revision to ensure amounts charged to the grants are in line with budget line items. Management response: Management will ensure a budget revision be done for any increase over 10% and submit that to the grantor to receive formal approval from the grantor.

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-002 Immunization Cooperative Agreements, ALN #93.268 Criteria: According to 2 CFR Section 200.305(b)(3), all reimbursement requests should be based on supporting documentation that shows the cost was incurred before the request for payment and that the payment to vendor was made. Condition: 4 of the 7 cash drawdown reports tested contained expense reimbursements requested for which there was missing supporting documentation for some of the expenses requested for reimbursements. Total questioned costs were $115,617. Cause: The extra expenses that were missing in the test were because IAFP used staff instead of consultants and the Organization did not update our policies and procedures to include time sheets to show how staff was allocated to the grant to support the charges. Effect: The effect is that the Organization requested funds but did not have back up to support that the actual expenses were incurred and was therefore not in compliance with the cash management requirements under Uniform Grant Guidance in relation reimbursement requests. Auditor recommendation: We recommend that the accounting department verify that the expense has been incurred and paid to the vendor before requesting reimbursement from the grantor and ensure that the backup documentation is filed where it can be located. We recommend hiring or training staff in relation to cash management and documentation of allowable cost. Management response: Management will follow the advice and undergo training in cash management and documentation of allowable costs.

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-003 Immunization Cooperative Agreements, ALN #93.268 Criteria: According to 2 CFR 200.430 i(i)(vii) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and there should be support to the distributions of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award. Condition: In gaining our understanding of controls over allowable costs for payroll, we noted that the Organization did not have proper documentation of time and effort analysis to support charges to the grants. Cause: The Organization used the grant budget to charge salaries to the grant but did not have any documentation showing an analysis of actual time worked on those grants. Effect: The hours charged to a program could be under stated or overstated if the actual hours differed from the grant budget hours. Auditor’s Recommendation: We recommend implementing the use of time sheets with grants or personnel activity reports that document actual hours worked by personnel on each grant. Management Response: Management will implement time sheets for all employees that work on grants that specify what grants they are working on, number of hours for each for all payrolls in 2024 to correct this problem going forward. In addition, the timesheets will include what functions those

DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-004 Immunization Cooperative Agreements, ALN #93.268 Criteria: According to 2 CFR Section 200.308, all budget revisions over 10% must receive a budget revision from the grantee. Condition: Following a budget revision of over 10%, an approval was not received from the grantee. Cause: At direction from the pass-through agency, the Organization charged salary expenses to the contract services line items on its request reimbursement instead of getting budget revisions to reflect the change in the work performed. Effect: The costs billed on the vouchers for reimbursement, did not match the natural classification of the actual expenses incurred on the grant resulting in expenses reported being over budget on certain line items and under budget on others. Auditor recommendation: We recommend that when there is a budget revision over 10%, the Organization works with the grantor to get formal documentation to support the revision to ensure amounts charged to the grants are in line with budget line items. Management response: Management will ensure a budget revision be done for any increase over 10% and submit that to the grantor to receive formal approval from the grantor.