Finding 1215439 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-05-22
Audit: 402060
Organization: New York Blood Center, Inc. (NY)

AI Summary

  • Core Issue: A payroll overcharge of $125.32 was identified due to a formula error in the spreadsheet used for calculations.
  • Impacted Requirements: This finding relates to compliance with 2 CFR Section 200.430(g), which mandates accurate records for salary and wage charges to federal awards.
  • Recommended Follow-Up: The Organization should implement a review process for payroll calculations prior to drawdowns and retain evidence of this review.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Blood Diseases and Resources Research Assistance Listing Number: 93.839 Award Period: 3/1/2022 – 12/31/2028 Type of Finding: - Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR Section 200.430(g) states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: During our testing of allowable costs for payroll related expenses, we noted one instance where payroll was overcharged by $125.32. Questioned costs: $125.32 Context: We noted 1 of the 40 tested payroll costs was overcharged to the grant by $125.32. Cause: The overdrawn of the funds was due to a formula error in the Organization's spreadsheet. Management's internal controls missed this miscalculation in their review of the allowable expenditures spreadsheet before costs were charged to the grant. Effect: $125.32 overcharged to grant in payroll expense. Repeat finding: No Recommendation: We recommend that the Organization reviews their calculations around payroll costs before drawdowns and that evidence of this review is retained. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Blood Diseases and Resources Research (ALN 93.839) Recommendation: We recommend that the Organization reviews their calculations around payroll costs before drawdowns and that evidence of this review is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is in the process of implementing an upgraded grants payroll allocation costs software (Paas 2.0) that contains system controls that will detect payroll changes and automatically update, thus preventing such errors in the future. In addition to these automated software controls, management will implement review procedures in parallel as a secondary measure of control to detect and prevent such errors. Management anticipates the implementation and completion of the software project and related procedures in July 2026. Name of the contact person responsible for corrective action: Mahtab Khan Planned completion date for corrective action plan: July 2026

Categories

Allowable Costs / Cost Principles Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1215431 2025-001
    Material Weakness Repeat
  • 1215432 2025-001
    Material Weakness Repeat
  • 1215433 2025-001
    Material Weakness Repeat
  • 1215434 2025-001
    Material Weakness Repeat
  • 1215435 2025-001
    Material Weakness Repeat
  • 1215436 2025-001
    Material Weakness Repeat
  • 1215437 2025-001
    Material Weakness Repeat
  • 1215438 2025-001
    Material Weakness Repeat
  • 1215440 2025-002
    Material Weakness Repeat
  • 1215441 2025-003
    Material Weakness Repeat
  • 1215442 2025-003
    Material Weakness Repeat
  • 1215443 2025-003
    Material Weakness Repeat
  • 1215444 2025-003
    Material Weakness Repeat
  • 1215445 2025-003
    Material Weakness Repeat
  • 1215446 2025-003
    Material Weakness Repeat
  • 1215447 2025-003
    Material Weakness Repeat
  • 1215448 2025-003
    Material Weakness Repeat
  • 1215449 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $153,034
93.839 BLOOD DISEASES AND RESOURCES RESEARCH $105,563
93.242 MENTAL HEALTH RESEARCH GRANTS $80,417
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $77,426
93.867 VISION RESEARCH $58,498
93.368 21ST CENTURY CURES ACT - PRECISION MEDICINE INITIATIVE $17,454
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $1