Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-002 Information on the Federal Program: Federal Agency: Department of Homeland Security Assistance Listing No.: 97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through: Illinois State Department of Health Pass-Through Award Number: PA-05-IL-4489-PW-01416(1753) Section III ? Federal Award Findings and Questioned Costs (continued) Pass-Through Award Period of Performance: January 20, 2020 through December 31, 2021 Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Per the FEMA Project Worksheet Report #664845, under the Subgrant Conditions section, bullet point 1, ?As described in Title 2 Code of Federal Regulations (C.F.R.) ? 200.333, financial records, supporting documents, statistical records and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three (3) years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.? Condition: The Organization?s internal controls were not suitably designed to retain all supporting documentation over their review and approval of FEMA federal expenditures. Management did not retain supporting documentation to support the inventory usage reports used in the development of the FEMA expenditures. Cause: Management designed a process to accumulate and review expenditures related to the FEMA; however, for certain components of the review and approval the supporting documentation was not retained to evidence that the internal review was sufficiently designed and operating effectively throughout the process. Section III ? Federal Award Findings and Questioned Costs (continued) Management did not retain supporting documentation to support the inventory usage reports used in the development of the FEMA expenditures. Questioned Costs: Unknown Context: The Organization recorded FEMA expenditures on the Schedule based on the number of units of the personal protective equipment (PPE) used during the period of performance outlined in the project worksheet times the average costs of each unit of PPE. The information used to develop the FEMA expenditures was obtained from the Organization?s inventory management system. Management did not retain supporting documentation to support the reliance on the inventory usage reports; therefore, the information from the inventory management system cannot be relied on for Uniform Guidance purposes. Management represented that they performed a review of FEMA expenditures but did not maintain evidence supporting all levels of review and approval of expenses under FEMA. We obtained the Organization?s FEMA project worksheet that reconciled to the schedule of expenditures of federal awards. We then selected a sample of 25 PPE items and agreed the items used and the average unit costs to the inventory management system. In addition, we compared the average unit cost to a third-party invoice to support the unit cost used. Management engaged a third party to perform a physical inventory of supplies at December 31, 2020 which included the PPE claimed in the SEFA obligation. The physical inventory was reconciled to the inventory management system. We selected a sample of inventory counts performed by the third-party agency and agreed the inventory counts back to the third-party records, noting no exceptions. A physical inventory was not performed at December 31, 2021. Total federal expenditures for Assistance Listing 97.036 recorded on the Schedule totaled $35,508,438 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Effect or Potential Effect: The amounts submitted for reimbursement and the reports submitted could be inaccurate or incomplete. Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: The Organization should design and implement internal controls that are sufficiently precise and require supporting documentation be retained over the review and approval of FEMA expenses. The Organization should retain evidence of internal controls related to access and change management over the report or a quality review process over the inventory reports. Management response: The FEMA personal protective equipment (PPE) claim covered two years, which are 2020 and 2021. As noted in the audit, the Organization engaged a third party to perform a physical inventory of supplies at December 31, 2020 which included the PPE claimed in the SEFA obligation. The physical inventory was reconciled to the inventory management system. The audit selected a sample inventory count performed by third party and agreed the inventory counts back to the third party records noting no exceptions. A physical inventory was not performed at December 31, 2021. Due to the COVID pandemic, there were unusual circumstances that precluded an annual physical inventory in 2021, due to the easy transmission of COVID-19, by breathing in air carrying droplets or aerosol particles that contain the SARS-CoV-2 virus when close to an infected person or in poorly ventilated spaces with infected persons. Noting there were no system changes to the inventory system during 2021, we relied on the prior year audits and internal control review of the inventory system to provide comfort for the Organization for reliance on the inventory usage for this FEMA claim. In addition to relying on past inventory documented audit controls, the Organization routinely reviews the supply expense generated from the inventory system.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-002 Information on the Federal Program: Federal Agency: Department of Homeland Security Assistance Listing No.: 97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through: Illinois State Department of Health Pass-Through Award Number: PA-05-IL-4489-PW-01416(1753) Section III ? Federal Award Findings and Questioned Costs (continued) Pass-Through Award Period of Performance: January 20, 2020 through December 31, 2021 Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Per the FEMA Project Worksheet Report #664845, under the Subgrant Conditions section, bullet point 1, ?As described in Title 2 Code of Federal Regulations (C.F.R.) ? 200.333, financial records, supporting documents, statistical records and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three (3) years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.? Condition: The Organization?s internal controls were not suitably designed to retain all supporting documentation over their review and approval of FEMA federal expenditures. Management did not retain supporting documentation to support the inventory usage reports used in the development of the FEMA expenditures. Cause: Management designed a process to accumulate and review expenditures related to the FEMA; however, for certain components of the review and approval the supporting documentation was not retained to evidence that the internal review was sufficiently designed and operating effectively throughout the process. Section III ? Federal Award Findings and Questioned Costs (continued) Management did not retain supporting documentation to support the inventory usage reports used in the development of the FEMA expenditures. Questioned Costs: Unknown Context: The Organization recorded FEMA expenditures on the Schedule based on the number of units of the personal protective equipment (PPE) used during the period of performance outlined in the project worksheet times the average costs of each unit of PPE. The information used to develop the FEMA expenditures was obtained from the Organization?s inventory management system. Management did not retain supporting documentation to support the reliance on the inventory usage reports; therefore, the information from the inventory management system cannot be relied on for Uniform Guidance purposes. Management represented that they performed a review of FEMA expenditures but did not maintain evidence supporting all levels of review and approval of expenses under FEMA. We obtained the Organization?s FEMA project worksheet that reconciled to the schedule of expenditures of federal awards. We then selected a sample of 25 PPE items and agreed the items used and the average unit costs to the inventory management system. In addition, we compared the average unit cost to a third-party invoice to support the unit cost used. Management engaged a third party to perform a physical inventory of supplies at December 31, 2020 which included the PPE claimed in the SEFA obligation. The physical inventory was reconciled to the inventory management system. We selected a sample of inventory counts performed by the third-party agency and agreed the inventory counts back to the third-party records, noting no exceptions. A physical inventory was not performed at December 31, 2021. Total federal expenditures for Assistance Listing 97.036 recorded on the Schedule totaled $35,508,438 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Effect or Potential Effect: The amounts submitted for reimbursement and the reports submitted could be inaccurate or incomplete. Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: The Organization should design and implement internal controls that are sufficiently precise and require supporting documentation be retained over the review and approval of FEMA expenses. The Organization should retain evidence of internal controls related to access and change management over the report or a quality review process over the inventory reports. Management response: The FEMA personal protective equipment (PPE) claim covered two years, which are 2020 and 2021. As noted in the audit, the Organization engaged a third party to perform a physical inventory of supplies at December 31, 2020 which included the PPE claimed in the SEFA obligation. The physical inventory was reconciled to the inventory management system. The audit selected a sample inventory count performed by third party and agreed the inventory counts back to the third party records noting no exceptions. A physical inventory was not performed at December 31, 2021. Due to the COVID pandemic, there were unusual circumstances that precluded an annual physical inventory in 2021, due to the easy transmission of COVID-19, by breathing in air carrying droplets or aerosol particles that contain the SARS-CoV-2 virus when close to an infected person or in poorly ventilated spaces with infected persons. Noting there were no system changes to the inventory system during 2021, we relied on the prior year audits and internal control review of the inventory system to provide comfort for the Organization for reliance on the inventory usage for this FEMA claim. In addition to relying on past inventory documented audit controls, the Organization routinely reviews the supply expense generated from the inventory system.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.
Finding 2022-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Assistance Listing No.: Research and Development Cluster (various Assistance Listings) Award Periods: Various Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): The Uniform Guidance 2 CFR Section 200.303 states, ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 45 CFR Part 75 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Appendix IX to Part 75 ? Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, states: ?Charges for salaries and wages of individuals other than members of the professional staff will be supported by daily time and attendance and payroll distribution records. For members of the professional staff, current and reasonable estimates of the percentage distribution of their total effort may be used as support in the absence of actual time records. In order to qualify as current and reasonable, estimates must be made no later than one month (though not necessarily a calendar month) after the month in which the services were performed. Estimates determined before the performance of services, such as budget estimates on a monthly, quarterly, or yearly basis do not qualify as estimates of effort spent.? Section III ? Federal Award Findings and Questioned Costs (continued) Condition: Charges of salaries and wages to the R&D Cluster were not consistently reviewed by a knowledgeable individual or not certified timely. In addition, certain individuals? effort certification did not account for 100% of their effort (R&D and institutional). Cause: The Organization does have not internal controls in place to monitor that 100% of effort is certified, and the effort is certified timely and reviewed and approved by a knowledgeable individual. Effect or Potential Effect: Charges for salaries and wages were charged to the R&D Cluster for individuals who did not certify their effort or 100% of their effort. In addition, the lack of internal controls over the review and approval of effort certification could result in unallowable charges for salaries and wages to be charged to the program. Questioned Costs: None Context: We selected a sample of 40 salaries and wages totaling $68,789 for the year ended December 31, 2022. We concluded effort certifications did not include 100% effort and were not reviewed and approved for 20 selections ($40,817). We also noted one instance ($1,965) which was not reviewed and approved timely. Total salaries and wages, fringe benefits, and indirect costs related to the R&D Cluster were $2,786,348 for the year ended December 31, 2022. Total R&D expenditures recorded on the Schedule of Expenditures of Federal Awards (the Schedule) are $3,323,540 for the year ended December 31, 2022. Section III ? Federal Award Findings and Questioned Costs (continued) Identification as a Repeat Finding, if Applicable: This is a repeat finding; see 2021-002. Recommendation: The Organization should implement internal controls to require individuals to certify 100% of their effort on a monthly basis to ensure that salaries and wages are based on actual efforts spent. The Organization should design and implement internal controls to review and approve the effort certified by an individual with knowledge of the employee?s effort on a timely basis. Management?s Response: The Office of Sponsored Research (OSR) committed in the 2020 Corrective Action Plan to implement a paper format effort certification process beginning March 2022. This process was fully implemented by the end of fiscal 2022. Also in 2022, Advocate Aurora Research Institute employees were transferred and integrated under one financial system. The integration of this system supports the monitoring of 100% of total effort. The OSR will also continue to utilize a paper effort certification process. The OSR team will generate effort certification form, distribute the effort certification form to the appropriate team member for manual or electronic signature and obtain a secondary approval signature from an individual who has first-hand knowledge of the team member?s activities. All completed effort certification forms will be verified and initialed by a third individual. Effort certification logs will be maintained to ensure that all effort certifications are completed within 30 days. Completed effort certification forms will be maintained within OSR.