Corrective Action Plan FY2024
2024-001
Assistance Listing Number, Federal Agency, and Program Name
• 10.500 – U. S. Department of Agriculture - Cooperative Extension Services
• Research and Development Cluster
o 12.000, U.S. Department of Defense, U.S. Department of Defense
o 12.431, U.S. Department...
Corrective Action Plan FY2024
2024-001
Assistance Listing Number, Federal Agency, and Program Name
• 10.500 – U. S. Department of Agriculture - Cooperative Extension Services
• Research and Development Cluster
o 12.000, U.S. Department of Defense, U.S. Department of Defense
o 12.431, U.S. Department of Defense, Basic Scientific Research
o 47.041, National Science Foundation, Engineering Grants
o 47.070, National Science Foundation, Computer and Information Science
o and Engineering
o 81.049, U.S. Department of Energy, Office of Science Financial Assistance
o Program
o 93.855, U.S. Department of Health & Human Services, Allergy, Immunology
o and Transplantation Research
o 93.859, U.S. Department of Health & Human Services, Biomedical
o Research and Research Training
o 98.001, Agency for International Development, USAID Foreign Assistance
o for Programs Overseas
Federal Award Identification Number and Year
• 10.500 - 2021-48762-35660, 2022-48703-38592, 2021-41590-34813
• 12.000 - 2021-21090200002
• 12.431 - W52P1J-22-9-3009, W52P1J-20-9-3009-10
• 47.041 - 2129782-CMMI, 1647722-EEC, 2132142-EFMA
• 47.070 - 2333009-CCF
• 81.049 - DE-SC0019215
• 93.855 - 5R01AI146160-05
• 93.859 - 5R01GM143370-02
• 98.001 - AID-7200AA18CA00009
Finding Type - Significant deficiency
Repeat Finding – Yes 2023-001
Criteria - As outlined in 2 CFR 200.305(b)(3), when the reimbursement method is used for payment, organizations must make a payment within 30 calendar days after receipt of the billing unless the federal awarding agency or pass-through entity reasonably believes the request to be improper.
Condition - The University did not have adequate controls in place to ensure invoices to subrecipients were paid timely within the 30-calendar-day requirement.
Questioned Costs - There were no questioned costs identified.
Context - Out of 60 payments to subrecipients that were tested related to the major programs tested, 21 were made after the 30-calendar-day requirement. In all samples tested, payment was made to the subrecipient; however, the delayed payments ranged from 31-119 days between the invoice being received by the University and payment being made to the subrecipient. The University did implement new preventative controls in place effective December 31, 2023 in
response to prior year finding (2023- 001). Of the 21 payments made after the 30-calendar-day requirement, 14 occurred prior to December 31, 2023, and the remaining 7 occurred after.
Cause and Effect - While the University had effective controls that were successful in achieving the 30-calendar-day requirement for 39 samples, the University failed to provide supplemental support and preventive controls during a period when it was addressing an issue that prevented timely payment for certain subrecipients.
Recommendation - The University should ensure appropriate training of employees is taking place and a preventive control is implemented to ensure that payments are made within the required timeline.
Views of Responsible Officials and Corrective Action Plan
Purdue University will address the recommendations and implement the following preventative controls to ensure that payments are made within the required timeline.
1) The Office of Research will increase the priority around the 30-day processing deadline mandated by the Uniform Guidance 2 CFR 200.305 (b)(3). This will be accomplished through communications, training and expectation setting with the following audiences:
a) Principal Investigators of active grants with sub-awards
i) Blanket communication
ii) Add the expected turnaround time on each sub-recipient communication when seeking principal investigator review and approval
iii) Modify the workflow email to heighten the awareness and timeliness expectations of processing
b) Sub-award Team in Sponsored Program Services
i) Blanket communications to SPS, Research Account Specialists, Business Offices, Tax,
Accounts Payable/Business Operations
ii) Utilize a report developed for internal reporting and tracking of pending sub-invoices to improve follow-up on payments approaching the 30-day deadline
iii) Increase the frequency of follow-up on outstanding invoices
iv) Add the expected turnaround time to the expectations document for each Sub-Award Team Member
v) Add sub-recipient payment deadlines to the mandatory training for the Sub-Award Team
vi) Update payment terms to “Payable immediately Due net; Based on Doc Date” for all
subrecipient invoices
vii) Modify procedures for foreign sub payments to streamline the processing between tax and export control offices related to required screenings
2) Conduct semi-annual training/refresher with sub-award staff. The first training will be held January 2025.
3) Work with subaward team staff to ensure that adequate documentation is created and maintained related to the follow-up that occurs when issues are being investigated and resolved that causes a delay in processing. These include visual compliance screenings for foreign wire transfers and other situations where delays occur for justified reasons (performance issues, delay in progress reports, questionable charges, missing or incomplete information, line-item concerns, etc.). Maintain documentation in the grant or posting document file
4) Evaluate and continually monitor staffing levels on the sub-award team and seek supplemental staffing when warranted.