FAC Explorer

Finding 500253 (2023-003)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323032
Organization: Nationwide Children's Hospital (OH)
Auditor: Ernst & Young

AI Summary

  • Core Issue: Effort certifications for employee salaries were not consistently reviewed and approved on time, risking inaccurate reporting.
  • Impacted Requirements: This finding violates Section 200.303 of Title 2 U.S. Code, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: The Corporation should enhance its effort certification processes to ensure timely approvals, addressing this repeat finding from previous audits.

Finding Text

Finding 2023-003 Identification of the federal program: Federal Agency: Department of Health and Human Services Assistance Listing No., Award Name, Award Number and Pass-Through Agency: Assistance Listing Award Name Award Number Pass-Through Agency 93.121 Oral Diseases and Disorders Research 1R01DE031756-01A1 93.110 Maternal and Child Health Federal Consolidated Programs 2 U03MC28844-09-00 Criteria or specific requirement (including statutory, regulatory, or other citation): Section 200.303 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states the following regarding internal control:   “The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in ‘Standards for Internal Control in the Federal Government’ issued by the Comptroller General of the United States or the ‘Internal Control Integrated Framework,’ issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Condition: Effort certifications were not timely reviewed and approved consistently for all employees’ salaries and wages for the year ended December 31, 2023. Cause: The Corporation has internal controls in place to require effort certifications be approved for all employees who charge effort to the R&D Cluster. However, they are not robust enough to ensure effort certification are reviewed timely. Effect or potential effect: Effort certifications were not timely reviewed; therefore, there is a risk that inaccurately reported effort is not timely identified. Questioned costs: None Context: We tested a sample of 40 salaries and wages ($20,924) and noted two instances ($2,746) where the effort report was not reviewed timely. Total salaries and wages charged to the R&D Cluster were $35,344,051 for the year ended December 31, 2023. Section III—Federal Award Findings and Questioned Costs (continued) The total amount reported on the schedule of expenditures of federal awards (Schedule) for the R&D cluster is $103,660,603. Identification as a repeat finding, if applicable: This is a repeat finding; see 2022-002. Recommendation: The Corporation should review its effort certification policies and procedures and implement more robust internal controls to ensure effort certifications are approved timely for all employees charging effort to the R&D Cluster. Views of responsible officials: Management agrees with the recommendation. In September 2023, E&Y rendered the same finding and recommendation for the 2022 calendar year audit. Management implemented a new procedure to ensure timely time and effort certification. Management implemented the process for first quarter 2024 to allow time for system updates and training.

Corrective Action Plan

Finding 2023-003 Grantor: Department of Health and Human Services Federal Program: Oral Diseases and Disorders Research Maternal and Child Health Federal Consolidated Programs Assistance Listing #: 93.121 93.110 Title: Effort Certification Award Year: Fiscal year 2023 1/1/2023 – 12/31/2023 Award Number: 1R01DE031756-01A1 2 U03MC28844-09-00 Corrective Action Plan and Anticipate Completion Date • In September 2023, E&Y rendered the same finding and recommendation for the 2022 calendar year audit. The finding has been remediated. Management implemented a new procedure to ensure timely time and effort certification. Management implemented the process for first quarter 2024 to allow time for system updates and training. Responsible person: Aaron Ufferman, Director, Sponsored Projects Completion Date: February 1, 2024

Categories

Reporting Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 500184 2023-001
    Material Weakness Repeat
  • 500185 2023-001
    Material Weakness Repeat
  • 500186 2023-001
    Material Weakness Repeat
  • 500187 2023-001
    Material Weakness Repeat
  • 500188 2023-001
    Material Weakness Repeat
  • 500189 2023-001
    Material Weakness Repeat
  • 500190 2023-001
    Material Weakness Repeat
  • 500191 2023-001
    Material Weakness Repeat
  • 500192 2023-001
    Material Weakness Repeat
  • 500193 2023-001
    Material Weakness Repeat
  • 500194 2023-001
    Material Weakness Repeat
  • 500195 2023-001
    Material Weakness Repeat
  • 500196 2023-001
    Material Weakness Repeat
  • 500197 2023-001
    Material Weakness Repeat
  • 500198 2023-001
    Material Weakness Repeat
  • 500199 2023-001
    Material Weakness Repeat
  • 500200 2023-001
    Material Weakness Repeat
  • 500201 2023-001
    Material Weakness Repeat
  • 500202 2023-001
    Material Weakness Repeat
  • 500203 2023-001
    Material Weakness Repeat
  • 500204 2023-001
    Material Weakness Repeat
  • 500205 2023-001
    Material Weakness Repeat
  • 500206 2023-001
    Material Weakness Repeat
  • 500207 2023-001
    Material Weakness Repeat
  • 500208 2023-001
    Material Weakness Repeat
  • 500209 2023-001
    Material Weakness Repeat
  • 500210 2023-001
    Material Weakness Repeat
  • 500211 2023-001
    Material Weakness Repeat
  • 500212 2023-001
    Material Weakness Repeat
  • 500213 2023-001
    Material Weakness Repeat
  • 500214 2023-001
    Material Weakness Repeat
  • 500215 2023-002
    Significant Deficiency
  • 500216 2023-002
    Significant Deficiency
  • 500217 2023-002
    Significant Deficiency
  • 500218 2023-002
    Significant Deficiency
  • 500219 2023-002
    Significant Deficiency
  • 500220 2023-002
    Significant Deficiency
  • 500221 2023-002
    Significant Deficiency
  • 500222 2023-002
    Significant Deficiency
  • 500223 2023-002
    Significant Deficiency
  • 500224 2023-002
    Significant Deficiency
  • 500225 2023-002
    Significant Deficiency
  • 500226 2023-002
    Significant Deficiency
  • 500227 2023-002
    Significant Deficiency
  • 500228 2023-002
    Significant Deficiency
  • 500229 2023-002
    Significant Deficiency
  • 500230 2023-002
    Significant Deficiency
  • 500231 2023-002
    Significant Deficiency
  • 500232 2023-002
    Significant Deficiency
  • 500233 2023-002
    Significant Deficiency
  • 500234 2023-002
    Significant Deficiency
  • 500235 2023-002
    Significant Deficiency
  • 500236 2023-002
    Significant Deficiency
  • 500237 2023-002
    Significant Deficiency
  • 500238 2023-002
    Significant Deficiency
  • 500239 2023-002
    Significant Deficiency
  • 500240 2023-002
    Significant Deficiency
  • 500241 2023-002
    Significant Deficiency
  • 500242 2023-002
    Significant Deficiency
  • 500243 2023-002
    Significant Deficiency
  • 500244 2023-002
    Significant Deficiency
  • 500245 2023-002
    Significant Deficiency
  • 500246 2023-002
    Significant Deficiency
  • 500247 2023-002
    Significant Deficiency
  • 500248 2023-002
    Significant Deficiency
  • 500249 2023-002
    Significant Deficiency
  • 500250 2023-002
    Significant Deficiency
  • 500251 2023-002
    Significant Deficiency
  • 500252 2023-002
    Significant Deficiency
  • 500254 2023-003
    Significant Deficiency Repeat
  • 1076626 2023-001
    Material Weakness Repeat
  • 1076627 2023-001
    Material Weakness Repeat
  • 1076628 2023-001
    Material Weakness Repeat
  • 1076629 2023-001
    Material Weakness Repeat
  • 1076630 2023-001
    Material Weakness Repeat
  • 1076631 2023-001
    Material Weakness Repeat
  • 1076632 2023-001
    Material Weakness Repeat
  • 1076633 2023-001
    Material Weakness Repeat
  • 1076634 2023-001
    Material Weakness Repeat
  • 1076635 2023-001
    Material Weakness Repeat
  • 1076636 2023-001
    Material Weakness Repeat
  • 1076637 2023-001
    Material Weakness Repeat
  • 1076638 2023-001
    Material Weakness Repeat
  • 1076639 2023-001
    Material Weakness Repeat
  • 1076640 2023-001
    Material Weakness Repeat
  • 1076641 2023-001
    Material Weakness Repeat
  • 1076642 2023-001
    Material Weakness Repeat
  • 1076643 2023-001
    Material Weakness Repeat
  • 1076644 2023-001
    Material Weakness Repeat
  • 1076645 2023-001
    Material Weakness Repeat
  • 1076646 2023-001
    Material Weakness Repeat
  • 1076647 2023-001
    Material Weakness Repeat
  • 1076648 2023-001
    Material Weakness Repeat
  • 1076649 2023-001
    Material Weakness Repeat
  • 1076650 2023-001
    Material Weakness Repeat
  • 1076651 2023-001
    Material Weakness Repeat
  • 1076652 2023-001
    Material Weakness Repeat
  • 1076653 2023-001
    Material Weakness Repeat
  • 1076654 2023-001
    Material Weakness Repeat
  • 1076655 2023-001
    Material Weakness Repeat
  • 1076656 2023-001
    Material Weakness Repeat
  • 1076657 2023-002
    Significant Deficiency
  • 1076658 2023-002
    Significant Deficiency
  • 1076659 2023-002
    Significant Deficiency
  • 1076660 2023-002
    Significant Deficiency
  • 1076661 2023-002
    Significant Deficiency
  • 1076662 2023-002
    Significant Deficiency
  • 1076663 2023-002
    Significant Deficiency
  • 1076664 2023-002
    Significant Deficiency
  • 1076665 2023-002
    Significant Deficiency
  • 1076666 2023-002
    Significant Deficiency
  • 1076667 2023-002
    Significant Deficiency
  • 1076668 2023-002
    Significant Deficiency
  • 1076669 2023-002
    Significant Deficiency
  • 1076670 2023-002
    Significant Deficiency
  • 1076671 2023-002
    Significant Deficiency
  • 1076672 2023-002
    Significant Deficiency
  • 1076673 2023-002
    Significant Deficiency
  • 1076674 2023-002
    Significant Deficiency
  • 1076675 2023-002
    Significant Deficiency
  • 1076676 2023-002
    Significant Deficiency
  • 1076677 2023-002
    Significant Deficiency
  • 1076678 2023-002
    Significant Deficiency
  • 1076679 2023-002
    Significant Deficiency
  • 1076680 2023-002
    Significant Deficiency
  • 1076681 2023-002
    Significant Deficiency
  • 1076682 2023-002
    Significant Deficiency
  • 1076683 2023-002
    Significant Deficiency
  • 1076684 2023-002
    Significant Deficiency
  • 1076685 2023-002
    Significant Deficiency
  • 1076686 2023-002
    Significant Deficiency
  • 1076687 2023-002
    Significant Deficiency
  • 1076688 2023-002
    Significant Deficiency
  • 1076689 2023-002
    Significant Deficiency
  • 1076690 2023-002
    Significant Deficiency
  • 1076691 2023-002
    Significant Deficiency
  • 1076692 2023-002
    Significant Deficiency
  • 1076693 2023-002
    Significant Deficiency
  • 1076694 2023-002
    Significant Deficiency
  • 1076695 2023-003
    Significant Deficiency Repeat
  • 1076696 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $35.67M
93.378 Integrated Care for Kids Model (a) $2.79M
93.RD Hhsn261201700015i / 75n91022f00001 $1.04M
93.RD 75r60221d00001/75r60222fs4003 $635,029
93.732 Mental and Behavioral Health Education and Training Grants $561,030
93.297 Teenage Pregnancy Prevention Program $539,544
93.493 Congressional Directives $500,000
93.137 Community Programs to Improve Minority Health Grant Program $440,309
93.RD Hhsn26100039 $404,863
93.RD Hhsn261201500003i / Hhsn26100039 $336,038
93.RD Hhsn261201700015i / 75n91022f00002 $308,682
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $299,890
93.RD 75r60221d00001/75r60222f34004 $271,128
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $262,620
93.321 Dietary Supplement Research Program $242,601
93.059 Training in General, Pediatric, and Public Health Dentistry $234,949
21.027 Coronavirus State and Local Fiscal Recovery Funds $213,776
16.526 Ovw Technical Assistance Initiative $192,455
93.958 Block Grants for Community Mental Health Services $159,186
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $156,766
93.253 Poison Center Support and Enhancement Grant $149,506
93.RD 1ot2od032701-01 $143,779
93.242 Mental Health Research Grants $134,472
93.RD 75r60221d00001 $130,596
32.006 Covid-19 Telehealth Program $120,844
93.172 Human Genome Research $116,252
47.074 Biological Sciences $111,776
93.225 National Research Service Awards_health Services Research Training $108,040
93.558 Temporary Assistance for Needy Families $106,025
93.213 Research and Training in Complementary and Integrative Health $98,813
93.575 Child Care and Development Block Grant $98,756
93.350 National Center for Advancing Translational Sciences $97,909
93.394 Cancer Detection and Diagnosis Research $97,306
93.788 Opioid Str $95,344
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $94,527
14.267 Continuum of Care Program $94,353
93.310 Trans-Nih Research Support $92,916
93.RD Cps-21131-19-0023 $81,575
93.926 Healthy Start Initiative $77,837
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $67,913
93.RD 75d30120c07725 $65,717
93.127 Emergency Medical Services for Children $64,419
93.917 Hiv Care Formula Grants $62,397
84.047 Trio_upward Bound $58,646
93.RD Hhsn261201500003i / 75n91019d00024 $57,029
93.RD W15qkn-16-9-1002 $56,342
16.320 Services for Trafficking Victims $51,387
93.393 Cancer Cause and Prevention Research $49,132
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $44,355
93.398 Cancer Research Manpower $43,494
93.069 Public Health Emergency Preparedness $41,992
93.866 Aging Research $41,325
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $39,850
93.495 Community Health Workers for Public Health Response and Resilient $39,416
16.575 Crime Victim Assistance $38,742
93.RD Hhsn261201500003i/hhsn26100039 $38,554
93.233 National Center on Sleep Disorders Research $38,133
93.RD Hdtra11910020 $36,787
93.136 Injury Prevention and Control Research and State and Community Based Programs $36,254
93.273 Alcohol Research Programs $34,242
93.RD Hhsn261201700015i / 75n91021f00001 $33,843
93.913 Grants to States for Operation of Offices of Rural Health $31,111
93.889 National Bioterrorism Hospital Preparedness Program $30,723
93.RD Hhsa1020699 $28,707
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $24,299
93.307 Minority Health and Health Disparities Research $23,873
93.838 Lung Diseases Research $23,301
93.RD 75r60221d00001/75r60223f34005 $23,130
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $22,526
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $22,352
93.121 Oral Diseases and Disorders Research $22,295
93.RD 75r60221d00001/75r60223f34006 $22,186
93.778 Medical Assistance Program $21,041
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $20,403
93.959 Block Grants for Prevention and Treatment of Substance Abuse $20,240
84.181 Special Education-Grants for Infants and Families $20,074
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $18,464
93.632 University Centers for Excellence in Developmental Disabilities Education, Research, and Service $16,833
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $16,406
93.351 Research Infrastructure Programs $16,017
93.279 Drug Abuse and Addiction Research Programs $15,448
93.994 Maternal and Child Health Services Block Grant to the States $14,960
94.006 Americorps $14,446
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $14,434
93.945 Assistance Programs for Chronic Disease Prevention and Control $14,035
93.RD 75r60221d00001/75r60223f34007 $13,571
16.831 Children of Incarcerated Parents $11,594
93.226 Research on Healthcare Costs, Quality and Outcomes $11,268
93.914 Hiv Emergency Relief Project Grants $10,388
16.757 Judicial Training on Child Maltreatment for Court Personnel Juvenile Justice Programs $10,140
12.420 Military Medical Research and Development $9,951
93.339 Public Health Conference Support $9,702
93.173 Research Related to Deafness and Communication Disorders $9,695
93.110 Maternal and Child Health Federal Consolidated Programs $9,640
93.859 Biomedical Research and Research Training $9,383
93.RD Hhsn272201600018c $9,131
16.585 Drug Court Discretionary Grant Program $8,517
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $7,782
93.399 Cancer Control $7,684
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $6,940
93.855 Allergy, Immunology and Transplantation Research $6,388
93.397 Cancer Centers Support Grants $6,184
47.075 Social, Behavioral, and Economic Sciences $5,318
93.396 Cancer Biology Research $5,043
93.RD 93.rd $3,964
93.RD Hhsn272201600017c $3,881
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $3,458
93.839 Blood Diseases and Resources Research $2,940
47.070 Computer and Information Science and Engineering $2,915
93.361 Nursing Research $2,858
93.865 Child Health and Human Development Extramural Research $2,185
93.RD Hhsn26100001 $1,897
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $1,430
93.867 Vision Research $567
93.837 Cardiovascular Diseases Research $535
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $459
93.RD 75n91019d00024 $354
93.590 Community-Based Child Abuse Prevention Grants $220
93.103 Food and Drug Administration_research $138
93.068 Chronic Diseases: Research, Control, and Prevention $111
93.395 Cancer Treatment Research $43
93.RD 75n93021c00014 $-3,152
93.RD Hhsn272201600014c $-3,649
12.351 Basic Scientific Research - Combating Weapons of Mass Destruction $-6,191
93.RD Hhsn26100002 $-18,664
93.RD 70rsat19cb0000014 $-22,892