Audit 55632

Finding 2022-002: Reporting Information on the Federal Program: 93.368 Criteria: National Institutes of Health requires that the Foundation submit monthly financial and programmatic reports in accordance with the grant agreement. Reports are due within 30 days of the end of the reporting period. Condition: We noted during our audit that the Foundation was unable to provide support to verify the submission dates of the reports selected for testing. The Foundation was also unable to provide evidence that the sampled reports were approved. Cause: Based on our discussions with management, reports are submitted to the grant officer by the Executive Director through email, and the email date is the evidence of the submission date and approval. Based on our understanding, there was a technical issue with the Executive Director's email during the year, and as a result, certain emails were lost or deleted and are unable to be located. As copies of these emails were not saved at the time they were sent, there is no way to obtain the email or validate compliance with the terms in the grant agreement. Effect: It is possible that the Foundation did not submit the required reports to the Grant Officer or the reports were not submitted in a timely manner. In both instances, non-compliance with the provisions in the award agreement could impact future funding. Questioned Costs: None Context: Our audit procedures consisted of testwork performed over a sample of reports required to be submitted during the year under audit. We consider our sample to be representative of the population. The issue appears to be systematic in nature. Recommendation: We recommend that all emails sent to the grant officer that contain monthly reports should be saved and filed at the time sent. This practice will ensure that documentation for all submission dates are readily available. Additionally, we recommend that the Foundation implement a formal approval policy over the reports to ensure that all reports go through a proper review prior to submission.

Finding 2022-003: Time Tracking and Reporting Information on the Federal Program: 93.368 Criteria: CFR 200.430 indicates that the allocation of salaries for employees must be consistently applied to both Federal and Non-Federal activities. Condition: We noted that time tracking was only required for employees charging time to federal awards. Additionally, the time tracking only included time spent by the employee on Federal activities, and not non-Federal activities. Timesheets should be required for all staff and should include time spent on both non-Federal and Federal activities in order to be in compliance with the Uniform Guidance. Additionally, we noted that timesheets lacked evidence of employee attestation. All timesheets should include employee signature to verify accuracy of time reported. Cause: Policies in place at the Foundation over time tracking only require that time spent on the Federal-activities be tracked. Policies also do not require employee signature on the timesheets prior to submission. Effect: It is possible that time charged to the Federal activities is not accurate as the allocation is not based on true time spent on activities as a whole, including both Federal and non-Federal. Questioned Costs: Unknown Context: Our audit procedures consisted of testwork completed on individual employee timesheets for certain pay periods. We consider our sample to be representative of the population. The condition appeared to be systemic in nature. Identification as a Repeat Finding, if Applicable: 2021-002. Recommendation: Timesheets should be required for all staff and should also include time spent on both Federal and non-Federal activities in order to be in compliance with Uniform Guidance Cost Principals. Additionally, all timesheets should include employee signature to verify accuracy of time reported.

Finding 2022-002: Reporting Information on the Federal Program: 93.368 Criteria: National Institutes of Health requires that the Foundation submit monthly financial and programmatic reports in accordance with the grant agreement. Reports are due within 30 days of the end of the reporting period. Condition: We noted during our audit that the Foundation was unable to provide support to verify the submission dates of the reports selected for testing. The Foundation was also unable to provide evidence that the sampled reports were approved. Cause: Based on our discussions with management, reports are submitted to the grant officer by the Executive Director through email, and the email date is the evidence of the submission date and approval. Based on our understanding, there was a technical issue with the Executive Director's email during the year, and as a result, certain emails were lost or deleted and are unable to be located. As copies of these emails were not saved at the time they were sent, there is no way to obtain the email or validate compliance with the terms in the grant agreement. Effect: It is possible that the Foundation did not submit the required reports to the Grant Officer or the reports were not submitted in a timely manner. In both instances, non-compliance with the provisions in the award agreement could impact future funding. Questioned Costs: None Context: Our audit procedures consisted of testwork performed over a sample of reports required to be submitted during the year under audit. We consider our sample to be representative of the population. The issue appears to be systematic in nature. Recommendation: We recommend that all emails sent to the grant officer that contain monthly reports should be saved and filed at the time sent. This practice will ensure that documentation for all submission dates are readily available. Additionally, we recommend that the Foundation implement a formal approval policy over the reports to ensure that all reports go through a proper review prior to submission.

Finding 2022-003: Time Tracking and Reporting Information on the Federal Program: 93.368 Criteria: CFR 200.430 indicates that the allocation of salaries for employees must be consistently applied to both Federal and Non-Federal activities. Condition: We noted that time tracking was only required for employees charging time to federal awards. Additionally, the time tracking only included time spent by the employee on Federal activities, and not non-Federal activities. Timesheets should be required for all staff and should include time spent on both non-Federal and Federal activities in order to be in compliance with the Uniform Guidance. Additionally, we noted that timesheets lacked evidence of employee attestation. All timesheets should include employee signature to verify accuracy of time reported. Cause: Policies in place at the Foundation over time tracking only require that time spent on the Federal-activities be tracked. Policies also do not require employee signature on the timesheets prior to submission. Effect: It is possible that time charged to the Federal activities is not accurate as the allocation is not based on true time spent on activities as a whole, including both Federal and non-Federal. Questioned Costs: Unknown Context: Our audit procedures consisted of testwork completed on individual employee timesheets for certain pay periods. We consider our sample to be representative of the population. The condition appeared to be systemic in nature. Identification as a Repeat Finding, if Applicable: 2021-002. Recommendation: Timesheets should be required for all staff and should also include time spent on both Federal and non-Federal activities in order to be in compliance with Uniform Guidance Cost Principals. Additionally, all timesheets should include employee signature to verify accuracy of time reported.