Audit 402933

Finding 2025-001: Research and Development Cluster Cash Management Draw Approvals Federal Agency: Department of Health and Human Services Criteria: 2 CFR 200.303 requires the recipient to establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance the award is managed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Foundation has established independent review and approval of drawdown requests by the CEO/Controller as key control over draw requests. Condition: The Foundation did not consistently follow its established controls requiring independent review and approval of drawdown reimbursement requests prior to submission. During our testing of drawdown request controls within the Research and Development Cluster, we noted that 4 of 66 drawdown reimbursement requests tested (the entire population of drawdown requests) were submitted without documentation of independent review and approval. Based on the requests tested, the amounts submitted were accurate supported, and no instances of noncompliance were identified. Cause: The exceptions appear to have resulted from oversight in the review process, which led to drawdown requests being submitted before approval was documented. Additionally, the exceptions occurred during a period in which the Foundation was transitioning finance personnel responsibilities. Effect: Certain drawdown requests were submitted before the Foundation’s key control was evidenced as having been performed. Repeat Finding: N/A Questioned Costs: None Recommendation: We recommend the Foundation strengthen procedures to ensure all drawdown requests are reviewed and approved by the appropriate independent party prior to submission and that evidence of such review is consistently maintained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See attached corrective action plan.