FAC Explorer

Finding 1072716 (2023-003)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-10
Audit: 319180
Organization: The Nemours Foundation (FL)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Manual adjustments to the Schedule of Expenditures of Federal Awards (SEFA) were incomplete due to payroll corrections not being fully captured.
  • Impacted Requirements: Compliance with 2 CFR sections 200.303 and 200.510 regarding internal controls and accurate reporting of federal awards.
  • Recommended Follow-Up: Revise processes to ensure timely identification of effort reporting changes and review manual adjustments for completeness after year-end.

Finding Text

Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.

Categories

Reporting

Other Findings in this Audit

  • 496237 2023-001
    Significant Deficiency
  • 496238 2023-002
    Significant Deficiency
  • 496239 2023-002
    Significant Deficiency
  • 496240 2023-002
    Significant Deficiency
  • 496241 2023-002
    Significant Deficiency
  • 496242 2023-002
    Significant Deficiency
  • 496243 2023-003
    Significant Deficiency
  • 496244 2023-003
    Significant Deficiency
  • 496245 2023-003
    Significant Deficiency
  • 496246 2023-003
    Significant Deficiency
  • 496247 2023-003
    Significant Deficiency
  • 496248 2023-003
    Significant Deficiency
  • 496249 2023-003
    Significant Deficiency
  • 496250 2023-003
    Significant Deficiency
  • 496251 2023-003
    Significant Deficiency
  • 496252 2023-003
    Significant Deficiency
  • 496253 2023-003
    Significant Deficiency
  • 496254 2023-003
    Significant Deficiency
  • 496255 2023-003
    Significant Deficiency
  • 496256 2023-003
    Significant Deficiency
  • 496257 2023-003
    Significant Deficiency
  • 496258 2023-003
    Significant Deficiency
  • 496259 2023-003
    Significant Deficiency
  • 496260 2023-003
    Significant Deficiency
  • 496261 2023-003
    Significant Deficiency
  • 496262 2023-003
    Significant Deficiency
  • 496263 2023-003
    Significant Deficiency
  • 496264 2023-003
    Significant Deficiency
  • 496265 2023-003
    Significant Deficiency
  • 496266 2023-003
    Significant Deficiency
  • 496267 2023-003
    Significant Deficiency
  • 496268 2023-003
    Significant Deficiency
  • 496269 2023-003
    Significant Deficiency
  • 496270 2023-003
    Significant Deficiency
  • 496271 2023-003
    Significant Deficiency
  • 496272 2023-003
    Significant Deficiency
  • 496273 2023-003
    Significant Deficiency
  • 496274 2023-003
    Significant Deficiency
  • 496275 2023-003
    Significant Deficiency
  • 496276 2023-003
    Significant Deficiency
  • 496277 2023-003
    Significant Deficiency
  • 496278 2023-003
    Significant Deficiency
  • 496279 2023-003
    Significant Deficiency
  • 496280 2023-003
    Significant Deficiency
  • 496281 2023-003
    Significant Deficiency
  • 496282 2023-003
    Significant Deficiency
  • 496283 2023-003
    Significant Deficiency
  • 496284 2023-003
    Significant Deficiency
  • 496285 2023-003
    Significant Deficiency
  • 496286 2023-003
    Significant Deficiency
  • 496287 2023-003
    Significant Deficiency
  • 496288 2023-003
    Significant Deficiency
  • 496289 2023-003
    Significant Deficiency
  • 496290 2023-003
    Significant Deficiency
  • 496291 2023-003
    Significant Deficiency
  • 496292 2023-003
    Significant Deficiency
  • 496293 2023-003
    Significant Deficiency
  • 496294 2023-003
    Significant Deficiency
  • 1072679 2023-001
    Significant Deficiency
  • 1072680 2023-002
    Significant Deficiency
  • 1072681 2023-002
    Significant Deficiency
  • 1072682 2023-002
    Significant Deficiency
  • 1072683 2023-002
    Significant Deficiency
  • 1072684 2023-002
    Significant Deficiency
  • 1072685 2023-003
    Significant Deficiency
  • 1072686 2023-003
    Significant Deficiency
  • 1072687 2023-003
    Significant Deficiency
  • 1072688 2023-003
    Significant Deficiency
  • 1072689 2023-003
    Significant Deficiency
  • 1072690 2023-003
    Significant Deficiency
  • 1072691 2023-003
    Significant Deficiency
  • 1072692 2023-003
    Significant Deficiency
  • 1072693 2023-003
    Significant Deficiency
  • 1072694 2023-003
    Significant Deficiency
  • 1072695 2023-003
    Significant Deficiency
  • 1072696 2023-003
    Significant Deficiency
  • 1072697 2023-003
    Significant Deficiency
  • 1072698 2023-003
    Significant Deficiency
  • 1072699 2023-003
    Significant Deficiency
  • 1072700 2023-003
    Significant Deficiency
  • 1072701 2023-003
    Significant Deficiency
  • 1072702 2023-003
    Significant Deficiency
  • 1072703 2023-003
    Significant Deficiency
  • 1072704 2023-003
    Significant Deficiency
  • 1072705 2023-003
    Significant Deficiency
  • 1072706 2023-003
    Significant Deficiency
  • 1072707 2023-003
    Significant Deficiency
  • 1072708 2023-003
    Significant Deficiency
  • 1072709 2023-003
    Significant Deficiency
  • 1072710 2023-003
    Significant Deficiency
  • 1072711 2023-003
    Significant Deficiency
  • 1072712 2023-003
    Significant Deficiency
  • 1072713 2023-003
    Significant Deficiency
  • 1072714 2023-003
    Significant Deficiency
  • 1072715 2023-003
    Significant Deficiency
  • 1072717 2023-003
    Significant Deficiency
  • 1072718 2023-003
    Significant Deficiency
  • 1072719 2023-003
    Significant Deficiency
  • 1072720 2023-003
    Significant Deficiency
  • 1072721 2023-003
    Significant Deficiency
  • 1072722 2023-003
    Significant Deficiency
  • 1072723 2023-003
    Significant Deficiency
  • 1072724 2023-003
    Significant Deficiency
  • 1072725 2023-003
    Significant Deficiency
  • 1072726 2023-003
    Significant Deficiency
  • 1072727 2023-003
    Significant Deficiency
  • 1072728 2023-003
    Significant Deficiency
  • 1072729 2023-003
    Significant Deficiency
  • 1072730 2023-003
    Significant Deficiency
  • 1072731 2023-003
    Significant Deficiency
  • 1072732 2023-003
    Significant Deficiency
  • 1072733 2023-003
    Significant Deficiency
  • 1072734 2023-003
    Significant Deficiency
  • 1072735 2023-003
    Significant Deficiency
  • 1072736 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $6.02M
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $2.45M
93.399 Cancer Control $811,966
32.006 Covid-19 Telehealth Program $409,678
93.732 Mental and Behavioral Health Education and Training Grants $371,092
93.994 Maternal and Child Health Services Block Grant to the States $343,188
93.396 Cancer Biology Research $299,174
93.493 Congressional Directives / Administration for Community Living $296,112
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $177,407
16.575 Crime Victim Assistance $151,180
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $146,697
93.225 National Research Service Awards_health Services Research Training $132,588
93.213 Research and Training in Complementary and Integrative Health $120,682
97.008 Non-Profit Security Program $97,908
93.121 Oral Diseases and Disorders Research $57,899
93.247 Advanced Nursing Education Grant Program $57,740
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $46,466
84.305 Education Research, Development and Dissemination $43,300
93.226 Research on Healthcare Costs, Quality and Outcomes $39,133
21.027 Coronavirus State and Local Fiscal Recovery Funds $36,134
93.127 Emergency Medical Services for Children $34,332
93.889 National Bioterrorism Hospital Preparedness Program $33,984
93.172 Human Genome Research $32,860
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $29,497
84.425 Education Stabilization Fund $29,200
93.310 Trans-Nih Research Support $26,059
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $23,214
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $20,225
12.420 Military Medical Research and Development $12,297
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $12,059
93.867 Vision Research $10,364
93.865 Child Health and Human Development Extramural Research $10,314
93.838 Lung Diseases Research $10,213
93.110 Maternal and Child Health Federal Consolidated Programs $9,045
93.395 Cancer Treatment Research $7,338
93.855 Allergy, Immunology and Transplantation Research $5,550
47.070 Computer and Information Science and Engineering $3,253
93.393 Cancer Cause and Prevention Research $3,100
93.839 Blood Diseases and Resources Research $3,015
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $2,159
93.837 Cardiovascular Diseases Research $1,323
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $942
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $796
93.173 Research Related to Deafness and Communication Disorders $547
93.859 Biomedical Research and Research Training $171
93.103 Food and Drug Administration_research $58