Finding 1140776 (2024-002)

Finding 2024-002 – Significant Deficiency over Internal Controls Related to Activities Allowed and Allowable Costs Compliance – Mathematical and Physical Sciences - Diverse Evolutionary Power of Nucleic Acid Libraries Carrying Different Information Content – 47.049 Criteria: The Foundation is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding activities allowed and allowable costs to ensure that payroll costs are appropriately charged to grants. Condition: During our testing, we noted one instance where payroll costs for a particular employee were not appropriately allocated across the grants that employee worked on. Cause: The Foundation’s secondary review process of grant justifications did not include procedures for reviewing the allocation of payroll costs across grants. Effect: The Foundation misallocated payroll costs. Recommendation: The Foundation should strengthen its controls related to the grant justification review process to include procedures for reviewing the allocation of payroll costs across grants. Management’s Response: We agree with the finding and will implement procedures to ensure internal controls and processes over grant justifications are updated to include review of payroll cost allocations.