Payroll - Review of Timesheets Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing a sample of 40 payroll items, we tested 3 of the Chief Executive Officers. The Chief Executive Officer’s timesheets were not reviewed and approved by another individual. Questioned Costs: None. Context: Payroll timesheets are not being properly reviewed on a timely basis for all employees. Cause: Payroll timesheets are not being properly reviewed on a timely basis by an individual other than the Chief Executive Officer. Effect: Inaccurate payroll costs may be charged to federal programs. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over the processing of payroll transactions should include timely review and approval of the payroll transactions through proper approval of the timesheets by an individual other than the employee themselves for all employees. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: CFO will be approving CEO timesheets Name(s) of the contact person(s) responsible for corrective action: Mary Lubben, CFO Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026.
Indirect Cost Calculations Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters . Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to ensure the accuracy of indirect cost calculations and draw requests. This ensures only allowable costs are charged to federal programs. Condition: In testing a sample of 7 indirect cost items, we noted 6 out of the 7 draws did not properly include proof of who prepared and reviewed/approved the indirect cost calculation. Questioned Costs: None. Context: Preparation and review of indirect costs are not being properly documented throughout the draw process. Cause: Policies and procedures had not been put into place to support proper documentation of preparation and review of draws prior to the draw being requested for indirect costs. Effect: Inaccurate indirect costs may be charged to federal programs. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over indirect cost calculations should include timely preparation, review and approval of the calculation. This documentation should include sign-offs and dates. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: The Grant and Accounting teams hold monthly in-person meetings to review grant-related expenditures. Going forward, email approval will be requested after each meeting and before the draw request is submitted to the governmental agency. Name(s) of the contact person(s) responsible for corrective action: \ Alina Birenyte, Controller Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026.
Cash Management - Review of Monthly Draws . Recommendation: Policies and procedures over monthly draws should include timely preparation, review and approval of the draw. This documentation should include sign-offs and dates. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: The Grant and Accounting teams hold monthly in-person meetings to review grant-related expenditures. Going forward, email approval will be requested after each meeting and before the draw request is submitted to the governmental agency. Name(s) of the contact person(s) responsible for corrective action: Alina Birenyte, Controller Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026. Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to ensure the accuracy of draw requests. This ensures only allowable costs are charged to federal programs. Condition: In testing a sample of 7 draws, we noted 6 out of the 7 draws did not properly include proof of who prepared and reviewed/approved each draw. Questioned Costs: None. Context: Preparation and review of monthly draws are not being properly documented throughout the draw process. Cause: Policies and procedures had not been put into place to document proper preparation and review of draws prior to the draw being requested. Procedures should be in accordance with the Uniform Guidance. Effect: Inaccurate expenditures may be charged to federal programs. Repeat Finding: This is a not repeat finding.
Proper Cut-off of Expenditures . Questioned Costs: None. Context: Monthly draws are not properly reporting expenditures on an accrual basis. Cause: Monthly draws need to be monitored to ensure proper cut-off and recording on the accrual basis in accordance with the Organization’s accounting policies. Effect: Inaccurate general disbursements may be charged to the SEFA in the incorrect year. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over monthly draws should include preparation and review of the draw to ensure completion in accordance with the accrual basis to ensure expenditures are recorded and reported in the proper period. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: PCAA will implement a formal year-end close communication process for vendors and subrecipients. Fiscal year-end reminders will be distributed by email, with a request that final invoices be submitted before the books are closed. PCAA will also maintain the books open for six weeks after fiscal year-end to help ensure expenditures are recorded in the proper fiscal year. Name(s) of the contact person(s) responsible for corrective action: Alina Birenyte, Controller Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by March 31, 2027. Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: The Organization has noted in the summary of significant accounting policies that they report expenditures on the SEFA on the accrual basis of accounting. In testing one month’s draw in our cash management sample, we identified expenditures that were recorded in the wrong period. Condition: In testing a sample of 7 draws, we noted 1 out of the 7 draws included expenditures from January – March 2025 totaling $8,805 which was incorrectly expensed in the year ending March 31, 2026.
Suspension and Debarment Verification Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: Under suspension and debarment, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 180 states that recipients and subrecipients are prohibited from contracting with under covered transactions to parties that are suspended or debarred. Condition: In testing the one vendor that had transactions over $25,000, we noted the Organization did not have a suspension and debarment policy in place and did not complete proof of verification the vendor was not suspended or debarred before entering into transaction/contract. Questioned Costs: None. Context: Vendor was not properly verified to confirm not suspended or debarred. Cause: The Organization did not have a suspension and debarment policy in place. Effect: Unallowable costs may be charged to the federal programs. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over disbursements should include properly verifying the vendor is not suspended or debarred prior to entering into a transaction/contract. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: PCA America will add suspension and debarment policies and procedures to the organization’s grants compliance manual. It will ensure vendor verification for suspension and debarment prior to entering into a transaction/contract. With annual review of suspension and debarment throughout the program lifecycle. Name(s) of the contact person(s) responsible for corrective action: Dr. Bart Klika, Chief Research Officer Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026.
Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to monitor subrecipient activities. This ensures only allowable costs are charged to federal programs. Under subrecipient monitoring, an organization in receipt of federal funding is required to have a system of controls in place to monitor subrecipients. 2 CFR Part 200 states that sub grantors should ensure subgrantees follow the Uniform Guidance. Condition: In testing 2 subrecipients, we noted the Organization did not have proper documented monitoring procedures in place, including review of the subrecipients audit reports. Questioned Costs: None. Context: Subrecipients are not being properly monitored. Cause: Policies and procedures had not been put into place to document proper monitoring of subrecipients. Effect: Unallowable costs may be charged to the federal programs. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over subrecipients should include properly monitoring of the subrecipient throughout the subcontract period. In addition, audit reports should be reviewed and evaluated annually. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: PCA America will add subrecipient monitoring policies and procedures to the organization’s grants compliance manual. These policies and procedures will be in compliance with Uniform Guidance to ensure proper annual monitoring. Name(s) of the contact person(s) responsible for corrective action: Dr. Bart Klika, Chief Research Officer Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026.