Finding 41505 (2022-001)

2022-001 Allowable Costs Federal agency: Center for Disease Control and Prevention Federal program title: Protecting and Improving Health Globally Assistance Listing Number: 93.318 Award Period: 09/30/2021-09/29/2023 * Significant Deficiency in Internal Control over Compliance * Other Matter Criteria: Under 2 CFR Part 200, IDSA is required to have internal controls in place to ensure only allowable costs are charged to the program. Condition: During our testing, we noted that IDSA did not adequately review payroll to determine that the amount being charged to the program was accurate. Questioned costs: No Context: There were two employee payroll charges that were inaccurately calculated. Cause: The policies and procedures surrounding timesheet and review of allowable costs charged to the grant were not consistently performed as designed. Effect: CLA noted that the ineffective internal controls over payroll resulted in improper payroll charges to the program. Repeat Finding: No Recommendation: We recommend IDSA to implement procedures to ensuring payroll costs are properly charged to the grant. Views of Responsible Officials of the Auditee: Out of approximately 30 employees billing to the CDC grant, the audit review uncovered two errors in our calculation of billable payroll. * An employee received a pay increase outside of our normal annual raise process, due to a promotion. We did not pick up the higher pay rate, and therefore, undercharged the grant for the final six months of the grant that ended on September 29, 2022. The salary was corrected for the calculations of the new grant year that began on September 30, 2022. * An employee received vacation pay as part of her final paycheck, when she left IDSA. We incorrectly billed CDC for the pro-rated portion of the vacation pay. The net of these two errors was an undercharge to the CDC grant billing of $549. We believe that our policies and review are adequate to insure accurate billings to the grant.