Finding 387506 (2023-002)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299671
Organization: Wake Forest University (NC)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The University failed to document risk evaluations and monitoring for subrecipients in 38 out of 40 cases, impacting compliance with federal requirements.
  • Impacted Requirements: Noncompliance with CFR section 200.332(b) regarding risk assessment and monitoring of subrecipients, leading to potential oversight of subaward usage.
  • Recommended Follow-up: Ensure consistent documentation of risk evaluations and monitoring processes for all subrecipients, adhering to established protocols moving forward.

Finding Text

Finding No. 2023-002: Subrecipient Monitoring Federal Program Research and Development Cluster (multiple ALNs) Federal Award Year July 1, 2022 to June 30, 2023 Federal Award Agencies U.S. Department of Health and Human Services; National Science Foundation Criteria or Requirement Per CFR section 200.332(b), a pass-through entity (PTE) must evaluate each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward. This evaluation of risk may include consideration of such factors as the following: 1. The subrecipient’s prior experience with the same or similar subawards; 2. The results of previous audits including whether or not the subrecipient receives single audits in accordance with 2 CFR Part 200, Subpart F, and the extent to which the same or similar subaward has been audited as a major program; 3. Whether the subrecipient has new personnel or new or substantially changed systems; and 4. The extent and results of federal awarding agency monitoring (e.g., if the subrecipient also receives federal awards directly from a federal awarding agency. Per 2 CFR sections 200.332(d) through (f), a pass-through entity (PTE) must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals. In addition to the procedures identified as necessary based upon the evaluation of subrecipient risk or specifically required by the terms and conditions of the award, subaward monitoring must include the following: 1. Reviewing financial and programmatic (performance and special reports) required by the PTE. 2. Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the federal award provided to the subrecipient from the PTE detected through audits, on-site reviews, and other means. 3. Issuing a management decision for audit findings pertaining to the federal award provided to the subrecipient from the PTE as required by 2 CFR section 200.521. Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition and Context In thirty-eight of forty samples totaling $2,821,079, there was no documentation showing that the University evaluated the subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient monitoring related to the subaward and monitored the activities of the subrecipient to ensure that the subaward complies with the terms and conditions of the subaward, and achieves performance goals. Cause and Potential Effect The University has a protocol in place outlining required risk evaluation and monitoring of subrecipients. Certain monitoring procedures were performed; however, the risk assessment process and the monitoring procedures related to review of subrecipient Uniform Guidance reports were not performed on a consistent basis due to certain transitions which occurred during the year. Questioned Costs None. Statistically Valid Sample The sample was not intended to be not, and was, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation The University should continue to follow their established protocol and document the review of their ongoing risk evaluation and monitoring process for all subrecipients. View of Responsible Officials We concur with the auditor’s assessment that subrecipient monitoring did not happen in the auditor’s desired time frame, but as of publication of this report all monitoring activities have been completed for fiscal year 2023 and will be completed for fiscal year 2024 prior to our next audit cycle.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 387491 2023-002
    Material Weakness
  • 387492 2023-002
    Material Weakness
  • 387493 2023-002
    Material Weakness
  • 387494 2023-002
    Material Weakness
  • 387495 2023-002
    Material Weakness
  • 387496 2023-002
    Material Weakness
  • 387497 2023-002
    Material Weakness
  • 387498 2023-002
    Material Weakness
  • 387499 2023-002
    Material Weakness
  • 387500 2023-002
    Material Weakness
  • 387501 2023-002
    Material Weakness
  • 387502 2023-002
    Material Weakness
  • 387503 2023-002
    Material Weakness
  • 387504 2023-002
    Material Weakness
  • 387505 2023-002
    Material Weakness
  • 387507 2023-002
    Material Weakness
  • 387508 2023-002
    Material Weakness
  • 387509 2023-002
    Material Weakness
  • 387510 2023-002
    Material Weakness
  • 387511 2023-002
    Material Weakness
  • 387512 2023-002
    Material Weakness
  • 387513 2023-002
    Material Weakness
  • 387514 2023-002
    Material Weakness
  • 387515 2023-002
    Material Weakness
  • 387516 2023-002
    Material Weakness
  • 387517 2023-002
    Material Weakness
  • 387518 2023-002
    Material Weakness
  • 387519 2023-002
    Material Weakness
  • 387520 2023-002
    Material Weakness
  • 387521 2023-002
    Material Weakness
  • 387522 2023-002
    Material Weakness
  • 387523 2023-002
    Material Weakness
  • 387524 2023-002
    Material Weakness
  • 387525 2023-002
    Material Weakness
  • 387526 2023-002
    Material Weakness
  • 387527 2023-002
    Material Weakness
  • 387528 2023-002
    Material Weakness
  • 387529 2023-002
    Material Weakness
  • 387530 2023-002
    Material Weakness
  • 387531 2023-002
    Material Weakness
  • 387532 2023-002
    Material Weakness
  • 387533 2023-002
    Material Weakness
  • 387534 2023-002
    Material Weakness
  • 387535 2023-002
    Material Weakness
  • 387536 2023-002
    Material Weakness
  • 387537 2023-002
    Material Weakness
  • 387538 2023-002
    Material Weakness
  • 387539 2023-002
    Material Weakness
  • 387540 2023-002
    Material Weakness
  • 387541 2023-002
    Material Weakness
  • 387542 2023-002
    Material Weakness
  • 387543 2023-002
    Material Weakness
  • 387544 2023-002
    Material Weakness
  • 387545 2023-002
    Material Weakness
  • 387546 2023-002
    Material Weakness
  • 387547 2023-002
    Material Weakness
  • 387548 2023-002
    Material Weakness
  • 387549 2023-002
    Material Weakness
  • 387550 2023-002
    Material Weakness
  • 387551 2023-002
    Material Weakness
  • 387552 2023-002
    Material Weakness
  • 387553 2023-002
    Material Weakness
  • 387554 2023-002
    Material Weakness
  • 387555 2023-002
    Material Weakness
  • 963933 2023-002
    Material Weakness
  • 963934 2023-002
    Material Weakness
  • 963935 2023-002
    Material Weakness
  • 963936 2023-002
    Material Weakness
  • 963937 2023-002
    Material Weakness
  • 963938 2023-002
    Material Weakness
  • 963939 2023-002
    Material Weakness
  • 963940 2023-002
    Material Weakness
  • 963941 2023-002
    Material Weakness
  • 963942 2023-002
    Material Weakness
  • 963943 2023-002
    Material Weakness
  • 963944 2023-002
    Material Weakness
  • 963945 2023-002
    Material Weakness
  • 963946 2023-002
    Material Weakness
  • 963947 2023-002
    Material Weakness
  • 963948 2023-002
    Material Weakness
  • 963949 2023-002
    Material Weakness
  • 963950 2023-002
    Material Weakness
  • 963951 2023-002
    Material Weakness
  • 963952 2023-002
    Material Weakness
  • 963953 2023-002
    Material Weakness
  • 963954 2023-002
    Material Weakness
  • 963955 2023-002
    Material Weakness
  • 963956 2023-002
    Material Weakness
  • 963957 2023-002
    Material Weakness
  • 963958 2023-002
    Material Weakness
  • 963959 2023-002
    Material Weakness
  • 963960 2023-002
    Material Weakness
  • 963961 2023-002
    Material Weakness
  • 963962 2023-002
    Material Weakness
  • 963963 2023-002
    Material Weakness
  • 963964 2023-002
    Material Weakness
  • 963965 2023-002
    Material Weakness
  • 963966 2023-002
    Material Weakness
  • 963967 2023-002
    Material Weakness
  • 963968 2023-002
    Material Weakness
  • 963969 2023-002
    Material Weakness
  • 963970 2023-002
    Material Weakness
  • 963971 2023-002
    Material Weakness
  • 963972 2023-002
    Material Weakness
  • 963973 2023-002
    Material Weakness
  • 963974 2023-002
    Material Weakness
  • 963975 2023-002
    Material Weakness
  • 963976 2023-002
    Material Weakness
  • 963977 2023-002
    Material Weakness
  • 963978 2023-002
    Material Weakness
  • 963979 2023-002
    Material Weakness
  • 963980 2023-002
    Material Weakness
  • 963981 2023-002
    Material Weakness
  • 963982 2023-002
    Material Weakness
  • 963983 2023-002
    Material Weakness
  • 963984 2023-002
    Material Weakness
  • 963985 2023-002
    Material Weakness
  • 963986 2023-002
    Material Weakness
  • 963987 2023-002
    Material Weakness
  • 963988 2023-002
    Material Weakness
  • 963989 2023-002
    Material Weakness
  • 963990 2023-002
    Material Weakness
  • 963991 2023-002
    Material Weakness
  • 963992 2023-002
    Material Weakness
  • 963993 2023-002
    Material Weakness
  • 963994 2023-002
    Material Weakness
  • 963995 2023-002
    Material Weakness
  • 963996 2023-002
    Material Weakness
  • 963997 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $41.79M
84.033 Federal Perkins Loan Program $7.06M
93.498 Provider Relief Fund $4.82M
93.RD Lung Organ Tissue Equivalent Platform for Modeling Chlor $4.35M
84.063 Federal Pell Grant Program $2.91M
93.397 Cancer Centers Support Grants $2.86M
98.001 Usaid Foreign Assistance for Programs Overseas $1.79M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $1.25M
93.RD Atrium Health Enrolling Site for the North Carolina Corvaseq (coronavirun Variant Sequencing) Surveillance Network Initiative $1.18M
12.RD Development of A Universal Bioink with Tunable Mechanica $1.05M
84.007 Federal Supplemental Educational Opportunity Grants $924,537
93.RD Collaboration for Developing A Virtual Reality App $851,848
12.RD Determining the Fundamental Differences Among Tissue Org $826,454
20.RD Crash Injury Research and Engineering Network (ciren) - Integrated Base Contract $619,351
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $604,303
84.033 Federal Work-Study Program $582,591
93.RD Multi-Ethnic Study of Atherosclerosis (mesa) Exam 7 $539,155
93.RD Womens Health Initiative (whi) - Southeast Regional Cent $464,695
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $440,661
81.049 Office of Science Financial Assistance Program $410,052
93.RD Elc Project K8 Threat of Antibiotic-Resistant Gonorrhea $396,163
12.340 Naval Medical Research and Development $384,939
93.RD Activ-3 - Therapeutics for Inpatients with Covid-19 (tic $359,196
12.630 Basic, Applied, and Advanced Research in Science and Engineering $349,329
93.211 Telehealth Programs $348,264
93.RD Petal Network Icc for Activ-3 'therapeutics for Severely Ill Inpatients with Covid-19 (tesico)' $344,825
12.RD Using Organ Tissue Equivalents & Ai for Predictive Pathologies & Treatment $333,545
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $286,315
93.879 Medical Library Assistance $256,954
93.351 Research Infrastructure Programs $249,903
93.310 Trans-Nih Research Support $201,450
93.978 Preventive Health Services_sexually Transmitted Diseases Research, Demonstrations, and Public Information and Education Grants $180,504
93.928 Special Projects of National Significance $178,422
93.RD Randomized Master Protocol for Immune Modulators for Tr $167,845
43.RD Science $163,765
94.003 State Commissions $159,133
43.001 Science $153,545
12.RD Assembly of Topologic $138,503
12.431 Basic Scientific Research $137,305
93.279 Drug Abuse and Addiction Research Programs $126,107
12.RD Chilled Platelet Study $117,048
93.173 Research Related to Deafness and Communication Disorders $114,508
93.867 Vision Research $107,957
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $106,438
93.213 Research and Training in Complementary and Integrative Health $104,807
93.RD Jackson Heart Surveillance Study (jhs Surveilliance) $102,563
93.RD Atherosclerosis Risk in Communities (aric)- Coordinating Center (cc) $97,230
93.233 National Center on Sleep Disorders Research $97,186
93.RD Ivy 5 - Surveillance of Acutely Ill Adults with Respiratory Viruses, Including Sars-Cov-2 $96,876
10.310 Agriculture and Food Research Initiative (afri) $96,093
12.351 Basic Scientific Research - Combating Weapons of Mass Destruction $93,491
93.941 Hiv Demonstration, Research, Public and Professional Education Projects $92,464
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $89,984
93.250 Geriatric Academic Career Awards Department of Health and Human Services (b) $82,475
47.050 Geosciences $76,757
43.003 Exploration $75,104
12.RD Development of Universal Media for the Support and Expan $72,018
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants $69,711
93.334 The Healthy Brain Initiative: Technical Assistance to Implement Public Health Actions Related to Cognitive Health, Cognitive Impairment, and Caregiving at the State and Local Levels $69,123
93.838 Lung Diseases Research $67,745
12.RD An Integrated Human Multi-Organ Tissue Equivalent Platform As An Eid Model for Evaluation of Therapeutics $57,941
93.RD Ai-Based Multi-Functional Hand-Held Lumify Ultrasound for Automatic and Intelligent Quantitative $55,249
93.865 Child Health and Human Development Extramural Research $53,852
12.RD Military-Civilian Prehospital Burn Provider Education Research Program $53,812
93.103 Food and Drug Administration_research $49,176
12.RD Post Traumatic Epilepsy A Longitudinal Population Based Medical Record Review Analysis of Incidence Risk and Prediction $48,679
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $47,636
10.311 Beginning Farmer and Rancher Development Program $46,792
12.RD Pragmatic Trial Examining Oxygenation Prior to Intubation (preoxi)_gibbs $45,394
27.011 Intergovernmental Personnel Act (ipa) Mobility Program $45,108
93.866 Aging Research $42,900
93.RD Surveillance of Acutely Ill Adults with Respiratory Viruses, Including Sars-Cov-2 (ivy 4)_gibbs $42,390
93.395 Cancer Treatment Research $41,063
93.242 Mental Health Research Grants $40,927
93.350 National Center for Advancing Translational Sciences $40,480
93.855 Allergy, Immunology and Transplantation Research $38,481
93.RD Jackson Heart Study Coordinating Center $35,633
93.470 Alzheimer's Disease Program Initiative (adpi) $30,790
93.396 Cancer Biology Research $30,397
93.172 Human Genome Research $30,037
93.110 Maternal and Child Health Federal Consolidated Programs $29,544
64.RD Traumatic Stress and Binge Drinking As Risk Factors for Excessive Alcohol $29,014
93.RD Impact of Nicotine Messaging on Nicotine Beliefs and Tobacco Use Behavior $27,208
93.124 Nurse Anesthetist Traineeships $25,401
93.262 Occupational Safety and Health Program $23,163
42.010 Teaching with Primary Sources $22,172
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $22,098
47.070 Computer and Information Science and Engineering $22,086
94.013 Volunteers in Service to America $21,308
93.273 Alcohol Research Programs $20,498
81.RD Assesing Environmental and Health Impacts $19,813
93.RD Sti Ctg Ta2 To8 - A Phase III Comparative Trial of Benza $19,551
93.RD Covid-19 Imaging Research Registry (cirr) $18,872
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $18,668
47.041 Engineering $18,027
12.RD A Phase 1b/2a, Randomized, Double-Blind, Placebo Controlled, Multiple Ascending Dose Escalation $16,419
93.RD Investigating the Biology of Cognitive Resilience in Whims Apoe E4 Escapees Using MacHine $16,261
81.RD Directed Electrode Nanostructure Engineering $16,034
93.399 Cancer Control $15,955
93.113 Environmental Health $15,811
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $15,482
12.RD Enhanced Rapid Assay for Monitoring Immunosuppressant Dr $15,075
47.075 Social, Behavioral, and Economic Sciences $14,831
93.121 Oral Diseases and Disorders Research $14,413
10.700 National Agricultural Library $14,125
93.RD Phase III Study of Daratumumab/rhuph20 (msc-810307) + Le $13,931
47.074 Biological Sciences $13,694
45.164 Promotion of the Humanities_public Programs $12,473
93.859 Biomedical Research and Research Training $11,830
93.RD Medical Imaging and Data Consortium: Rapid Response to C $11,722
10.216 1890 Institution Capacity Building Grants $11,629
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $11,624
93.RD Intergovernmental Personnel Act of 1970 $10,869
47.076 Education and Human Resources $10,608
64.RD Va Ipa - Mara Vitolins $10,288
93.RD Ctsuea6134 - A Randomized Phase III Trial of Dabrafenib $9,721
93.393 Cancer Cause and Prevention Research $9,069
84.336 Teacher Quality Partnership Grants $8,669
93.361 Nursing Research $8,508
93.969 Pphf Geriatric Education Centers $8,175
21.019 Coronavirus Relief Fund $7,520
64.RD High Resolution Profiling of Senescent Cells in Als Brain and Spinal Cord $7,329
93.RD A041701 A Randomized Phase Ii/iii Study of Conventional $6,863
93.226 Research on Healthcare Costs, Quality and Outcomes $6,703
93.RD Eaf151: Change in Relative Cerebral Blood Volume As A Bi $6,576
93.307 Minority Health and Health Disparities Research $6,029
93.RD A041702 - Open End Date $5,675
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $4,083
93.RD A Phase II Study of Inotuzumab Ozogamicin Followed by Bl $4,054
93.RD A Randomized Phase III Study of Ibrutinib (pci-32765)-Ba $3,825
12.RD A011502: A Randomized Phase III Double Blinded Placebo C $3,796
12.RD Immunopathology Fluorescent Imaging and Histomorphomet $3,691
93.394 Cancer Detection and Diagnosis Research $3,444
93.RD Randomized Phase III Trial of Bortezomib Lenalidomide A $3,369
93.837 Cardiovascular Diseases Research $3,101
12.300 Basic and Applied Scientific Research $2,748
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $2,744
93.461 Covid-19 Testing for the Uninsured $2,366
93.398 Cancer Research Manpower $1,913
93.359 Nurse Education, Practice Quality and Retention Grants $1,499
93.RD Evaluating Fitness-for-Use of Electronic Health Records $874
45.149 Promotion of the Humanities_division of Preservation and Access $855
93.RD Subcontract for Strategies and Treatments for Respiratory and Viral Emergencies Study Payments (strive) $822
12.420 Military Medical Research and Development $814
93.RD A Randomized Phase III Clinical Trial Evaluated Post-Mas $574
93.RD Covpn 3003 Booster Randomized, Double Blind, Placebo Controlled Phase 3 Study to Assess the Efficacy and Safety of Ad26.cov2.s for the Prevention of Sars Cov 2 Mediated Covid-19 in Adults Aged 18 Years and Older $388
93.RD Optimal Perioperative Therapy for Incidental Gallbladde $348
12.RD The Acute Burn Resuscitation Multicenter Prospective Trial -2 (abrupt 2 $312
93.073 Birth Defects and Developmental Disabilities - Prevention and Surveillance $233
47.049 Mathematical and Physical Sciences $28
93.839 Blood Diseases and Resources Research $17
93.077 Family Smoking Prevention and Tobacco Control Act Regulatory Research $-1,004
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $-6,167