Finding 1218302 (2025-101)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-24

AI Summary

  • Core Issue: An invoice for $1,955 was incorrectly charged to the wrong grant due to an error in invoice coding.
  • Impacted Requirements: Costs must be necessary, reasonable, and properly allocated according to 2 CFR 200, Subpart E.
  • Recommended Follow-Up: Enhance review procedures to ensure costs are accurately charged to the correct grant, leveraging the new electronic procurement system.

Finding Text

INVOICE CODING - Federal Agency: National Institutes of Health. Award Names: The Function of Germ Granule Processes that Maintain Pluripotency in the C. Elegans Germline. Program Year: January 1, 2025 – December 31, 2025. Assistance Listing Numbers: 93.859. Repeat Finding: This is not a repeat finding. Criteria: Costs are necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR 200, Subpart E. Condition: One invoice charged to the grant in the amount of $1,955 should have been allocated to a different grant. Context: Internal control review procedures did not correctly identify that the invoice was charged to the incorrect grant. Effect: Cost was charged to the wrong grant. Cause: Error in invoice coding. Recommendation: Review procedures should be enhanced to ensure approved costs are charged to the appropriate grant. Views of Responsible Officials: This mistake of grant attribution was subsequently corrected completely. The issue was attributable to a manual process that has been replaced by electronic processing. The electronic procurement system significantly reduces, and in most cases eliminates, data entry and manual translation between procurement and posting to a particular grant. Adequate review and oversight processes are in place and this issue does not reflect a systemic failure.

Corrective Action Plan

INVOICE CODING - Criteria: Costs are necessary and reasonable for the performance of the federal award and allocable under the principles of 2 CFR 200, Subpart E. Condition: One invoice charged to the grant in the amount of $1,955 should have been allocated to a different grant. Context: Internal control review procedures did not correctly identify that the invoice was charged to the incorrect grant. Effect: Cost was charged to the wrong grant. Cause: Error in invoice coding. Recommendation: Review procedures should be enhanced to ensure approved costs are charged to the appropriate grant. Corrective Action: This mistake of grant attribution was subsequently corrected completely. The issue was attributable to a manual process that has been replaced by electronic processing. The electronic procurement system significantly reduces and in most cases eliminates data entry and manual translation between procurement and posting to a particular grant. Adequate review and oversight processes are in place and this issue does not reflect a systemic failure. Responsible Party: Claudine Lurvey, VP of Finances.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Programs in Audit

ALN Program Name Expenditures
93.493 CONGRESSIONAL DIRECTIVES $254,512
93.361 NURSING RESEARCH $225,395
47.074 BIOLOGICAL SCIENCES $126,905
47.083 INTEGRATIVE ACTIVITIES $124,716
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $94,630
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $94,287
93.172 HUMAN GENOME RESEARCH $77,566
93.351 RESEARCH INFRASTRUCTURE PROGRAMS $27,338
93.113 ENVIRONMENTAL HEALTH $26,349
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $8,433
11.417 SEA GRANT SUPPORT $4,994
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2,831