Finding 1055847 (2022-003)

Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Proper controls over drawdowns are critical to reduce the risk that there are errors in amounts and information reported. Further, the risk of noncompliance is increased when federal awards are not properly identified. Internal controls procedures should be in place to ensure review of drawdowns. Condition: There is a lack of sufficient controls over review and documentation of review of drawdowns. Questioned costs: N/A Context: During testing of indirect costs, allowable cost/activities, and period of performance, there was no control or review taking place over these compliance areas. Cause: Due to the Institute receiving federal funding for the first time in 2022, the Institute had not set up a proper system of internal controls till 2023. Effect: Ensuring the drawdowns are reviewed for accuracy is critical to ensure a proper internal control system and prevention of errors. Repeat Finding: No Recommendation: Recommend the Institute identify an individual with an understanding of the grant and compliance requirements to review the drawdowns prepared by the Controller. Views of responsible officials: There is no disagreement with the audit finding.