Finding 1054841 (2023-003)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-07-15

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over cash management compliance, affecting the accuracy of reimbursement requests.
  • Impacted Requirements: The Foundation failed to ensure that cash draws were only made for costs that had already been incurred, violating grant management criteria.
  • Recommended Follow-Up: Strengthen controls to ensure cash draws are submitted only after actual expenditures, and implement a review process for grant management.

Finding Text

Finding 2023-003 – Significant Deficiency over Internal Controls Related to Cash Management Compliance - Human Genome Research - Enzyme Synthesis of RNA – 93.172 Criteria: The Foundation is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding cash management to ensure that reimbursement requests and related draws are made for allocable, allowable and reasonable costs that have already been incurred or paid. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the timing of draws in relation to the costs incurred to date. Cause: The former grant administrator was responsible for all aspects of grant management, without review by another member of management. Effect: The Foundation was not able to ensure that internal controls were implemented or operating effectively. Recommendation: The Foundation should strengthen its controls related to the cash draw processes to ensure that grant funding only be submitted for reimbursement and cash draws once an expenditure has been made, regardless of anticipated expenditures. Management’s Response: We agree with the finding and will implement procedures to ensure internal controls over grant funding draws is based on allocable, allowable expenditures incurred to date.

Categories

Cash Management Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.855 Allergy, Immunology and Transplantation Research $590,732
93.172 Human Genome Research $475,864
93.396 Cancer Biology Research $184,601
93.859 Biomedical Research and Research Training $169,634
47.074 Biological Sciences $167,982
47.049 Mathematical and Physical Sciences $115,059