Audit 350641

FY End
2024-06-30
Total Expended
$4.81M
Findings
2
Programs
8
Year: 2024 Accepted: 2025-03-31

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
541038 2024-002 Significant Deficiency - A
1117480 2024-002 Significant Deficiency - A

Contacts

Name Title Type
80571246A501 Annette Myarick Auditee
4844463042 William Loughery Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in this Schedule as expenditures may differ from certain financial reports submitted to funding agencies because those reports may be submitted on either a cash or modified accrual basis of accounting. Expenditures of federal awards are reported on the statement of activities as operating expenses. In certain programs, the expenditures reported in the basic financial statements differ from the expenditures reported in the Schedule because other program expenditures and expenditures may exceed contract budget limitations and are therefore not included as expenditures of federal awards. Pass-through entity identifying numbers are presented if applicable on the Schedule. De Minimis Rate Used: N Rate Explanation: The indirect cost rate is calculated and approved annually by the Chapter’s funders and is based on the ratio of total indirect expenses to total direct labor. Accordingly, the 10% de minimis rate is not utilized. The accompanying schedule of expenditures of federal awards (the Schedule) presents activities in all the federal, state, county, and city award programs of Pennsylvania Chapter, American Academy of Pediatrics (collectively, the Chapter) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Chapter, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Chapter.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in this Schedule as expenditures may differ from certain financial reports submitted to funding agencies because those reports may be submitted on either a cash or modified accrual basis of accounting. Expenditures of federal awards are reported on the statement of activities as operating expenses. In certain programs, the expenditures reported in the basic financial statements differ from the expenditures reported in the Schedule because other program expenditures and expenditures may exceed contract budget limitations and are therefore not included as expenditures of federal awards. Pass-through entity identifying numbers are presented if applicable on the Schedule. De Minimis Rate Used: N Rate Explanation: The indirect cost rate is calculated and approved annually by the Chapter’s funders and is based on the ratio of total indirect expenses to total direct labor. Accordingly, the 10% de minimis rate is not utilized. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in this Schedule as expenditures may differ from certain financial reports submitted to funding agencies because those reports may be submitted on either a cash or modified accrual basis of accounting. Expenditures of federal awards are reported on the statement of activities as operating expenses. In certain programs, the expenditures reported in the basic financial statements differ from the expenditures reported in the Schedule because other program expenditures and expenditures may exceed contract budget limitations and are therefore not included as expenditures of federal awards. Pass-through entity identifying numbers are presented if applicable on the Schedule.
Title: PROGRAM AND INDIRECT EXPENSE ALLOCATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in this Schedule as expenditures may differ from certain financial reports submitted to funding agencies because those reports may be submitted on either a cash or modified accrual basis of accounting. Expenditures of federal awards are reported on the statement of activities as operating expenses. In certain programs, the expenditures reported in the basic financial statements differ from the expenditures reported in the Schedule because other program expenditures and expenditures may exceed contract budget limitations and are therefore not included as expenditures of federal awards. Pass-through entity identifying numbers are presented if applicable on the Schedule. De Minimis Rate Used: N Rate Explanation: The indirect cost rate is calculated and approved annually by the Chapter’s funders and is based on the ratio of total indirect expenses to total direct labor. Accordingly, the 10% de minimis rate is not utilized. The indirect cost rate is calculated and approved annually by the Chapter’s funders and is based on the ratio of total indirect expenses to total direct labor. Accordingly, the 10% de minimis rate is not utilized.

Finding Details

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.268 Pass-through Agency: Pennsylvania Department of Health Pass-through Number: 4100090652 Award Period: July 1, 2021 - June 30, 2025 Compliance Requirement Affected: Allowable Costs Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria: 3 CFR Part 200 Subpart E General Provisions for Selected Items of Cost Section 200.430 Compensation – requires charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates determined before the services are performed alone do not qualify as support for charges to the federal awards. The Chapter’s system of internal controls should include processes to perform periodic after-the-fact reviews of interim charges made to a federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition: During our testing, we noted the Chapter charges fringe benefits to the program based on an estimated allocation on the percentage of salaries as determined in the contract budget. However, we noted the Chapter does not have internal controls in place to provide a review of the actual fringe benefits incurred. Questioned Costs: No questioned costs above the $25,000 threshold have been identified. Context: During our testing, we noted the Chapter charges fringe benefits to the programs based on an estimated allocation on the percentage of salaries as determined in the contract budget. Cause: The Chapter does not have internal controls in place to provide a review of the actual fringe benefits incurred. Effect: Allocated costs that are not appropriately budgeted and invoiced could result in inaccurate reporting and misrepresentation of the program's expenses. Inaccurate reporting of expenses can result in noncompliance with federal regulations, which may lead to the requirement to return funds to the federal agency. Repeat Finding: N/A: Not a repeat finding. Recommendation: We recommend Pennsylvania Chapter, American Academy of Pediatrics establish a process for periodic after-the-fact reviews of interim charges made to federal awards based on budget estimates. Based on the review, management should make any necessary adjustments to the interim charges based on the results of the periodic reviews. This would ensure that the final amount charged to the federal award is accurate, allowable, and properly allocated. Viewed of Responsible Officials and Planned Corrective Actions: Please refer to Pennsylvania Chapter, American Academy of Pediatrics Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Immunization Cooperative Agreements Assistance Listing Number: 93.268 Pass-through Agency: Pennsylvania Department of Health Pass-through Number: 4100090652 Award Period: July 1, 2021 - June 30, 2025 Compliance Requirement Affected: Allowable Costs Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria: 3 CFR Part 200 Subpart E General Provisions for Selected Items of Cost Section 200.430 Compensation – requires charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates determined before the services are performed alone do not qualify as support for charges to the federal awards. The Chapter’s system of internal controls should include processes to perform periodic after-the-fact reviews of interim charges made to a federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition: During our testing, we noted the Chapter charges fringe benefits to the program based on an estimated allocation on the percentage of salaries as determined in the contract budget. However, we noted the Chapter does not have internal controls in place to provide a review of the actual fringe benefits incurred. Questioned Costs: No questioned costs above the $25,000 threshold have been identified. Context: During our testing, we noted the Chapter charges fringe benefits to the programs based on an estimated allocation on the percentage of salaries as determined in the contract budget. Cause: The Chapter does not have internal controls in place to provide a review of the actual fringe benefits incurred. Effect: Allocated costs that are not appropriately budgeted and invoiced could result in inaccurate reporting and misrepresentation of the program's expenses. Inaccurate reporting of expenses can result in noncompliance with federal regulations, which may lead to the requirement to return funds to the federal agency. Repeat Finding: N/A: Not a repeat finding. Recommendation: We recommend Pennsylvania Chapter, American Academy of Pediatrics establish a process for periodic after-the-fact reviews of interim charges made to federal awards based on budget estimates. Based on the review, management should make any necessary adjustments to the interim charges based on the results of the periodic reviews. This would ensure that the final amount charged to the federal award is accurate, allowable, and properly allocated. Viewed of Responsible Officials and Planned Corrective Actions: Please refer to Pennsylvania Chapter, American Academy of Pediatrics Corrective Action Plan.