Audit 402060

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Blood Diseases and Resources Research Assistance Listing Number: 93.839 Award Period: 3/1/2022 – 12/31/2028 Type of Finding: - Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR Section 200.430(g) states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: During our testing of allowable costs for payroll related expenses, we noted one instance where payroll was overcharged by $125.32. Questioned costs: $125.32 Context: We noted 1 of the 40 tested payroll costs was overcharged to the grant by $125.32. Cause: The overdrawn of the funds was due to a formula error in the Organization's spreadsheet. Management's internal controls missed this miscalculation in their review of the allowable expenditures spreadsheet before costs were charged to the grant. Effect: $125.32 overcharged to grant in payroll expense. Repeat finding: No Recommendation: We recommend that the Organization reviews their calculations around payroll costs before drawdowns and that evidence of this review is retained. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Diabetes, Digestive, and Kidney Diseases Extramural Research Assistance Listing Number: 93.847 Award Period: 7/1/2023 – 6/30/2025 Type of Finding: - Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR Section 200.1 states that charges to Federal awards must relate to costs incurred within the Federal award period of performance. Condition: During our testing of costs charged towards the end of a grant, we noted an instance where a cost incurred was outside of the period of performance. Questioned costs: $96.00 Context: We noted 1 of the 48 tested costs related to period of performance was incurred outside of the Federal award period of performance. Cause: The cost charged to the grant was not thoroughly reviewed to ensure the costs was incurred within the period of performance. Effect: $96.00 charged to grant outside of the period of performance. Repeat finding: No Recommendation: We recommend that the Organization reviews the dates of costs incurred before charging costs to their federal award and that evidence of this review is retained. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Blood Diseases and Resources Research Assistance Listing Number: 93.839 Award Period: 3/1/2022 – 12/31/2028 Type of Finding: - Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR Section 200.320(a)(2) states that when simplified acquisition procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Condition: During our testing of procurement, we noted that the organization has a process to review quotes from more than one vendor before entering into a transaction with a vendor. However, we noted one instance of the simplified acquisition procurement method being used with no price or rate quotations obtained from qualified sources retained on file prior to the transaction being entered. Questioned costs: $11,868.60 Context: We noted 1 of the 5 tested purchases was acquired using the simplified acquisition procurement method being used with no price or rate quotations obtained from qualified sources. Cause: Per discussion with management, The Organization did obtain price or rate quotations from more than one qualified source for a purchase made using the simplified acquisition procurement method. However, the documentation was not retained to provide evidence that this took place before entering into a transaction with that vendor. Effect: $11,868.60 purchase with no justification for procurement method chosen. Repeat finding: No Recommendation: We recommend that the Organization follows all procurement method requirements for purchases over the $10,000 micro-purchase threshold. Views of responsible officials: There is no disagreement with the audit finding.