FAC Explorer

Finding 31411 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-01-23
Audit: 35900
Organization: International Society of Travel Medicine, Inc. (GA)
Auditor: Fulton & Kozak LLC

AI Summary

  • Core Issue: Salaries were charged based on estimates rather than actual time worked, leading to a $9,728 overcharge.
  • Impacted Requirements: This finding indicates a significant deficiency in internal controls and noncompliance with HHS cost principles.
  • Recommended Follow-up: Strengthen internal controls for employee time allocation to ensure compliance with federal grant requirements.

Finding Text

Finding 2022-002: Allowable Costs/Cost Principles ? Personnel Time Allocations Compliance Requirement: Allowable Costs/Cost Principles Internal Control Impact: Significant Deficiency and Nonmaterial Noncompliance Federal Agency: Department of Health and Human Services AL Numbers and Titles: 93.860 ? Emerging Infections Sentinel Networks Federal Award Number: 6 NU50CK000478 Questioned Costs: $9,728 Repeat Finding: No Criteria: Per the HHS Policies, compensation costs are allowable to the extent that they are reasonable, conform to the established policy of the organization consistently applied regardless of the source of funds, and reflect no more than the percentage of time actually devoted to the project. Condition: Salaries and wages were charged to the project based on projected amounts and not actual incurred costs. Cause: As a result of this oversight error, the Society overcharged $9,728 of direct costs. Sufficient review controls were not in place to detect the overcharge. Effect: Failure to charge the actual percentage of time devoted to the project may lead to noncompliance with grant terms and conditions. Recommendation: We recommend that the entity strengthen its internal controls over the allocation of employee time charged to federal grants in order to ensure that costs charged to the program were accounted for in accordance with the applicable cost principles. Views of Responsible Officials Corrective Actions: Management agrees with this finding. Please refer to the Corrective Action Plan.

Corrective Action Plan

Condition Salaries and wages were charged to the project based on projected amounts and not actual incurred costs. As a result of this oversight error, the Society overcharged $9,728 of direct costs. Correction action A review of actual expenses for staff salary and benefits will be completed to ensure actual amounts for all relevant personnel are charged to the project. Rather than using a projected amount, monthly entries will be posted based on actual expenditures. Responsible Person Whitney Alexander, Acting Executive Director Anticipated completion date As of December 2022, we have begun reviewing expenditures and anticipate posting an entry in January 2023 to true up current year entries that have been recorded this fiscal year. We expect monthly entries based on actual expenditures to commence in January 2023.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 607853 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.860 Emerging Infections Sentinel Networks $208,279