FAC Explorer

Finding 501115 (2023-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323383
Organization: The Carle Foundation (IL)
Auditor: Kpmg

AI Summary

  • Core Issue: Carle failed to maintain proper documentation for time and effort reporting related to personnel costs charged to federal awards.
  • Impacted Requirements: This violates 2 CFR 200.430(i) and 2 CFR 200.303, which require accurate records and effective internal controls for federal funding.
  • Recommended Follow-Up: Carle should assess and enhance its time tracking processes to ensure complete and accurate documentation for federal awards.

Finding Text

Finding 2023-001: Failure to Maintain Proper Documentation of Time and Effort Reporting Condition Found: Carle did not have proper documentation of time and effort relating to personnel costs charged to the program. In testing of 40 selected payroll costs, Carle was unable to provide physical documentation of timesheets or other effort tracking for 16 samples to support the amounts allocated by percentage to the Illinois SOR2 award. Though Carle was able to provide rationale for the amounts allocated, including estimated time spent on the award, allocations do not meet standards for documentation of personnel expenses. Criteria or Requirement: 2 CFR 200.430(i) requires charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates alone do not qualify as support for charges to Federal awards. 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure time charged to federal grants is appropriately tracked and certified. Cause: In discussion with Carle management, internal controls were not effectively implemented at the organizational level or cascaded to department leadership. This was the first grant for the department and while internal controls were in place, it is clear they were not sufficient. Possible Asserted Effect: Failure to maintain appropriate documentation of personnel costs may lead to questioned costs or inaccurate reporting of federal expenditures. Repeat Finding: A similar finding was reported in the prior year audit (2022-001). Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend Carle evaluate its process for preparing and reviewing time tracking for federal awards and implement the procedures necessary to ensure documentation of personnel costs are complete and accurate. Views of Carle management: There is an understanding of this repeated finding, and a need for corrective action. Actions were taken in September 2023 when the finding was initially noted to improve internal controls and ensure compliance in maintaining proper documentation for time and effort reporting under federal awards.

Corrective Action Plan

Corrective Action Plan: SOR II grant leadership evaluated its process for preparing and reviewing time tracking for this award and implemented procedures to ensure appropriate documentation of personnel costs is complete and accurate. The prior year's finding was corrected with the pay period ending 9/23/2023, which resulted in this repeat finding for the year ended 12/31/2023. Hourly staff are clocking into the appropriate cost center and salaried staff are submitting hours to payroll to ensure the proper tracking of time. Contact Person(s): Heather Hintz/Kathy Dams Anticipated Completion Date: 10/1/2023

Categories

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

Other Findings in this Audit

  • 501116 2023-001
    Material Weakness Repeat
  • 501117 2023-001
    Material Weakness Repeat
  • 501118 2023-001
    Material Weakness Repeat
  • 501119 2023-002
    Material Weakness
  • 501120 2023-002
    Material Weakness
  • 501121 2023-002
    Material Weakness
  • 501122 2023-002
    Material Weakness
  • 501123 2023-003
    Material Weakness
  • 501124 2023-003
    Material Weakness
  • 501125 2023-003
    Material Weakness
  • 501126 2023-003
    Material Weakness
  • 501127 2023-004
    Material Weakness
  • 501128 2023-004
    Material Weakness
  • 501129 2023-004
    Material Weakness
  • 501130 2023-004
    Material Weakness
  • 1077557 2023-001
    Material Weakness Repeat
  • 1077558 2023-001
    Material Weakness Repeat
  • 1077559 2023-001
    Material Weakness Repeat
  • 1077560 2023-001
    Material Weakness Repeat
  • 1077561 2023-002
    Material Weakness
  • 1077562 2023-002
    Material Weakness
  • 1077563 2023-002
    Material Weakness
  • 1077564 2023-002
    Material Weakness
  • 1077565 2023-003
    Material Weakness
  • 1077566 2023-003
    Material Weakness
  • 1077567 2023-003
    Material Weakness
  • 1077568 2023-003
    Material Weakness
  • 1077569 2023-004
    Material Weakness
  • 1077570 2023-004
    Material Weakness
  • 1077571 2023-004
    Material Weakness
  • 1077572 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.399 Cancer Control $2.41M
84.268 Federal Direct Student Loans $2.28M
32.006 Covid-19 Telehealth Program $643,231
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $604,775
21.027 Coronavirus State and Local Fiscal Recovery Funds $600,000
84.063 Federal Pell Grant Program $599,878
93.470 Elder Abuse Prevention Interventions Program $552,758
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $370,562
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $352,357
93.889 National Bioterrorism Hospital Preparedness Program $144,106
93.788 Opioid Str $144,025
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $132,939
84.425 Education Stabilization Fund $100,731
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $95,760
14.181 Supportive Housing for Persons with Disabilities $79,250
93.837 Cardiovascular Diseases Research $76,368
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $72,442
93.958 Block Grants for Community Mental Health Services $72,248
93.052 National Family Caregiver Support, Title Iii, Part E $71,856
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $57,623
93.959 Block Grants for Prevention and Treatment of Substance Abuse $56,582
93.994 Maternal and Child Health Services Block Grant to the States $50,000
93.242 Mental Health Research Grants $48,857
84.007 Federal Supplemental Educational Opportunity Grants $43,718
84.033 Federal Work-Study Program $38,556
93.301 Small Rural Hospital Improvement Grant Program $35,814
93.747 Elder Abuse Prevention Interventions Program $33,688
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $33,094
93.155 Rural Health Research Centers $32,231
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $28,660
93.838 Lung Diseases Research $25,305
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $23,288
93.368 21st Century Cures Act - Precision Medicine Initiative $14,000
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $6,543
93.279 Drug Abuse and Addiction Research Programs $6,342
93.575 Child Care and Development Block Grant $6,127
12.420 Military Medical Research and Development $5,000
93.865 Child Health and Human Development Extramural Research $1,130
93.569 Community Services Block Grant $1,085
21.006 Tax Counseling for the Elderly $680
93.395 Cancer Treatment Research $624
93.273 Alcohol Research Programs $387
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $20
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $0