Finding Number: 2024-002 Disbursement Documentation - Significant Deficiency; Repeat Finding: No; Questioned Costs: None; Funding Agency: Department of Health and Human Services, US Department of Treasury AL Number: 93.243, 21.027 Award Year: 7/1/2023 – 6/30/2024, 7/1/2023 – 6/30/2024 Condition: A sample of expenses were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected for testing, we noted insufficient documentation to support approval on 10 out of the 18 expenses selected for testing. Criteria: The Organization is required to follow the Uniform Guidance requirement 2 CFR 200.303, which requires the Organization to establish, document and maintain effective internal controls over federal awards. The Organization verbally approved these expenses but lacked the documentation to support the approval. Cause: The Organization’s fiscal policies and procedures did not require written approval, leading to reliance on verbal approvals which were not documented. Effect: The failure to document approvals for expenses could lead to unallowable costs to be disbursed on grant awards. Effect: The failure to document approvals for expenses could lead to unallowable costs to be disbursed on grant awards. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan. Management has hired new fiscal staff and implemented a new expense management system that requires invoice approvals for all purchases.
Finding Number: 2024-002 Disbursement Documentation - Significant Deficiency; Repeat Finding: No; Questioned Costs: None; Funding Agency: Department of Health and Human Services, US Department of Treasury AL Number: 93.243, 21.027 Award Year: 7/1/2023 – 6/30/2024, 7/1/2023 – 6/30/2024 Condition: A sample of expenses were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected for testing, we noted insufficient documentation to support approval on 10 out of the 18 expenses selected for testing. Criteria: The Organization is required to follow the Uniform Guidance requirement 2 CFR 200.303, which requires the Organization to establish, document and maintain effective internal controls over federal awards. The Organization verbally approved these expenses but lacked the documentation to support the approval. Cause: The Organization’s fiscal policies and procedures did not require written approval, leading to reliance on verbal approvals which were not documented. Effect: The failure to document approvals for expenses could lead to unallowable costs to be disbursed on grant awards. Effect: The failure to document approvals for expenses could lead to unallowable costs to be disbursed on grant awards. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan. Management has hired new fiscal staff and implemented a new expense management system that requires invoice approvals for all purchases.
Department of Health and Human Services FFAL #93.087, 90CU0095, 9/30/2018 – 9/29/2024 Enhance Safety of Children Affected by Substance Abuse Activities Allowed or Unallowed and Allowable Costs and Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: The Center is required to have procedures in place to ensure that federal awards are expended only for allowable costs in accordance with Subpart E – Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: In our sample of expenditures selected for testing, we noted calculation errors when allocating payroll expenses to the federal grant. Cause: The calculation errors were due to the use of a wrong employee’s allocation percentage, a keying error for the amount of payroll taxes for an employee, and not properly updating the calculation of worker’s compensation based upon the new percentage effective January 1, 2024 for the state of Iowa. In addition, the secondary review of federal grant expenditure tracking spreadsheet did not identify the calculation errors. Effect: The Center’s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Center could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner. Questioned Costs: The program was overcharged by $1,348. Context: A total non-statistical sample of 60 nonpayroll and payroll transactions out of more than 250 transactions were selected for testing, which accounted for $113,666 of $474,590 of federal payroll and nonpayroll direct program expenditures. Repeat Finding from Prior Year: Yes, prior year finding 2023-003 Recommendation: We recommend management review the procedures and control processes involving allocating payroll expenses and the federal grant expenditure tracking spreadsheet to ensure compliance with the federal grant. Views of Responsible Officials: Management is in agreement.
Department of Health and Human Services FFAL #93.696, 1H79SM087069, 9/30/2022 – 9/30/2026 Certified Community Behavior Health Clinic Expansion Grants Activities Allowed or Unallowed and Allowable Costs and Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: The Center is required to have procedures in place to ensure that federal awards are expended only for allowable costs in accordance with Subpart E – Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. 2 CFR 200.430(i) establishes the standards for documentation of personnel expenses including charges to Federal awards for salaries and wages. Charges must be based on records that accurately reflect the work performed with the records meeting the following standards: a) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. b) Be incorporated into the office records of the non-Federal entity. c) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. d) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy. e) Comply with the established accounting policies and practices of the non-Federal entity. f) Support the distribution of the employee’s salary or wages among specific activities or cost objectives. g) Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes. Condition: In our sample of expenditures selected for testing, we noted the following items: a) ClickTime timecard, which tracks federal and nonfederal hours for employees, did not properly reflect the employees total federal and nonfederal hours being paid within the payroll register (1 instances). b) Calculation errors for expenses allocated to the grant (3 instances). c) Employee tracked 2.7 hours under the federal program and a nonfederal program line in ClickTime (1 instance) causing it to be double counted. Cause: An employee entered 8 hours of PTO into ClickTime for two days each; however, the employee was only paid for 4 hours of PTO for each day. The calculation errors were due to the use of a wrong employee’s allocation percentage and a keying error for payroll expenses for an employee. The secondary review of the employee ClickTime timecards did not identify the incorrectly tracked hours and double tracked time. Also, the secondary review of federal grant expenditure tracking spreadsheet did not identify the calculation errors. Effect: The Center’s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Center could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner. Questioned Costs: The program was overcharged by $1,134. Context: A total non-statistical sample of 60 nonpayroll and payroll transactions out of more than 250 transactions were selected for testing, which accounted for $239,541 of $886,400 of federal payroll and nonpayroll direct program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend management review the procedures and control processes involving timecards, allocating payroll expenses and the federal grant expenditure tracking spreadsheet to ensure compliance with the federal grant. Views of Responsible Officials: Management is in agreement.
Department of Health and Human Services FFAL #93.087, 90CU0095, 9/30/2018 – 9/29/2024 Enhance Safety of Children Affected by Substance Abuse Matching Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. In addition, 2 CFR 200.306 establishes that matching funds be verifiable from the non-federal entity’s records and are allowable under Subpart E – Cost Principles and 2 CFR 200.403(g) establishes that costs be adequately documented. Condition: In our sample of expenditures selected for testing, we noted 5.15 hours identified as Medicaid hours for one employee were not removed from the employee’s total hours when calculating the amount of match for the federal program. Cause: The employee’s Medicaid hours were not properly included within a revenues report due to the employee’s provider number not being included within the report parameters. Effect: The Center’s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Center could claim as match disallowed costs under the federal award and would not be able to detect and correct noncompliance in a timely manner. Questioned Costs: Error resulted in $142; however, the Center has identified more than the match requirement under the federal program. Context: A total non-statistical sample of 12 out of 58 match transactions were selected for testing, which accounted for $49,219 out of $233,501 of federal match expenditures. Repeat Finding from Prior Year: Yes, prior year finding 2023-006 Recommendation: We recommend management review the procedures and control processes involving the match claim workbook to ensure compliance with the federal grant. Views of Responsible Officials: Management is in agreement.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.
Assistance Listing, Federal Agency, and Program Name - R&D Cluster - all awards Federal Award Identification Number and Year - R&D Cluster - see SEFA for details Pass-through Entity - R&D Cluster - see SEFA for details Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303(a), a nonfederal entity must establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the recipient or subrecipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should align with the 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). Condition - One of the internal controls that the University has designed related to ensuring that personnel expenses charged to federal grants were accurate is an effort certification that is completed at least annually. This control was not operating effectively during the year ended June 30, 2024, as certain effort certifications were not completed timely. Questioned Costs - None Identification of How Questioned Costs Were Computed - No unallowable costs were identified related to the testing completed. Context - The breakdown in controls was identified by management. There were several grants within the R&D Cluster that did not have effort certifications, which are typically performed through a workflow, completed during the year. Cause and Effect - The University’s control was ineffective as it allowed effort certifications to remain outstanding with no detective control to ensure that the certifications were completed timely, resulting in numerous effort certifications that were completed well after a time that would be effective for identifying any adjustments to federal payroll expenditures that would need to be made. As a result, effort certifications were not completed timely. Recommendation - We recommend implementing a control to ensure that all effort certifications are completed within an effective timeframe. Views of Responsible Officials and Planned Corrective Actions - Penn State concurs with the audit finding. Penn State has maintained a compliant effort certification system for decades. Our leadership remains wholly committed to addressing the concerns that were brought to our attention last fall. The FY24 annual effort certification process was launched on July 25, 2024. All business areas were informed at that time that effort confirmation is a “critical financial responsibility” and that final approvals were to be secured by September 30, 2024. It was brought to leadership’s attention that several effort reports were not timely certified. This was investigated by our Research Accounting Office in accordance with Penn State’s policy. As a result of frequent follow up, by the end of October 2024, virtually all such effort reports were resolved. A small number of such effort reports were certified later in fall 2024, generally due to system errors and/or special challenges associated with personnel changes.