FAC Explorer

Finding 501861 (2023-002)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-10-07
Audit: 323960
Organization: Elizabeth Glaser Pediatric Aids Foundation (DC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The Foundation's review and approval process for expenditures is not functioning as intended, leading to discrepancies in recorded costs.
  • Impacted Requirements: Non-compliance with federal financial management standards could result in disallowed costs for the major program, specifically affecting all awards under the Global AIDS program.
  • Recommended Follow-Up: Ensure adherence to documented policies for timely approval and recording of expenditures; provide additional training to staff to improve compliance.

Finding Text

2023-002 Internal Control over Compliance and Compliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles Identification of the Major Federal Program: United States Department of Health and Human Services Assistance Listing Number: 93.067 Assistance Listing Name: Global AIDS Award Number(s): All awards presented on the SEFA for the year ended December 31, 2023. Criteria or Specific Requirement: In accordance with §200.302 Financial Management, a non- federal entity's financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in §200.327 Financial Reporting and §200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Additionally, §200.303 Internal Controls states that a 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. Condition: The Foundation has documented expenditure policies and procedures. However, as identified below, the review and approval process did not operate as designed. The Foundation’s policies are designed to ensure expenses are reviewed and approved timely to ensure proper recording in the books and records. During our indirect cost pool testing of 40 (forty) samples, one (1) of the 40 transactions tested was recorded at the pro-forma invoice amount. Based on the final authorized invoice, a variance of approximately $1,420 was identified. As this is an indirect allocated pool, this impacts all awards within the major program. Cause: The Foundation has documented expenditure policies and procedures regarding the timely processing and approval of expenditures incurred. However, as identified above, the review and approval process for the samples identified above did not operate as designed. Effect: The lack of adherence to established internal control policies and procedures can lead to noncompliance with federal statutes, regulations, and the provisions of award agreements which could ultimately lead to disallowed costs for the major program. Questioned Costs: $1,420 of known costs. Context: This is a condition identified per review of the Foundation’s compliance with allocability and allowability provisions of the Uniform Guidance. The prevalence of this finding is detailed in the condition section above. Samples were selected using a non-statistical method. Recommendation: BDO recommends the Foundation adhere to its documented policies and procedures regarding authorization and timely approval and recording of expenditures. Views of Responsible Officials: Foundation management agrees with the finding and recommendations set forth within and will provide additional training to staff members to ensure compliance with established policies and procedures. Refer to management’s corrective action plan for additional information.

Categories

Questioned Costs Allowable Costs / Cost Principles Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 501841 2023-002
    Significant Deficiency
  • 501842 2023-002
    Significant Deficiency
  • 501843 2023-002
    Significant Deficiency
  • 501844 2023-002
    Significant Deficiency
  • 501845 2023-002
    Significant Deficiency
  • 501846 2023-002
    Significant Deficiency
  • 501847 2023-002
    Significant Deficiency
  • 501848 2023-002
    Significant Deficiency
  • 501849 2023-002
    Significant Deficiency
  • 501850 2023-002
    Significant Deficiency
  • 501851 2023-002
    Significant Deficiency
  • 501852 2023-002
    Significant Deficiency
  • 501853 2023-002
    Significant Deficiency
  • 501854 2023-002
    Significant Deficiency
  • 501855 2023-002
    Significant Deficiency
  • 501856 2023-002
    Significant Deficiency
  • 501857 2023-002
    Significant Deficiency
  • 501858 2023-002
    Significant Deficiency
  • 501859 2023-002
    Significant Deficiency
  • 501860 2023-002
    Significant Deficiency
  • 501862 2023-002
    Significant Deficiency
  • 501863 2023-002
    Significant Deficiency
  • 501864 2023-003
    Significant Deficiency
  • 1078283 2023-002
    Significant Deficiency
  • 1078284 2023-002
    Significant Deficiency
  • 1078285 2023-002
    Significant Deficiency
  • 1078286 2023-002
    Significant Deficiency
  • 1078287 2023-002
    Significant Deficiency
  • 1078288 2023-002
    Significant Deficiency
  • 1078289 2023-002
    Significant Deficiency
  • 1078290 2023-002
    Significant Deficiency
  • 1078291 2023-002
    Significant Deficiency
  • 1078292 2023-002
    Significant Deficiency
  • 1078293 2023-002
    Significant Deficiency
  • 1078294 2023-002
    Significant Deficiency
  • 1078295 2023-002
    Significant Deficiency
  • 1078296 2023-002
    Significant Deficiency
  • 1078297 2023-002
    Significant Deficiency
  • 1078298 2023-002
    Significant Deficiency
  • 1078299 2023-002
    Significant Deficiency
  • 1078300 2023-002
    Significant Deficiency
  • 1078301 2023-002
    Significant Deficiency
  • 1078302 2023-002
    Significant Deficiency
  • 1078303 2023-002
    Significant Deficiency
  • 1078304 2023-002
    Significant Deficiency
  • 1078305 2023-002
    Significant Deficiency
  • 1078306 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.067 Project Alcancar - Advancing Sustainable Implementation of Comprehensive Hiv/tb Services for Epidemic Control in Mozambique $23.14M
98.001 Usaid/tanzania’s Client-Centered Health Program Hiv and Tuberculosis Northern $19.65M
93.067 Project Inili - Implementation of Comprehensive Programs for the Prevention, Care, and Treatment of Hiv/aids in the Republic of Cote D'ivoire Under Pepfar $12.17M
93.067 Develop, Implement, and Sustain High Quality Comprehensive Hiv Cascade Activities for Children, Adolescents, and Adults in Facility and Community Based Settings in Cameroon Under the President`s Emergency Plan for Aids Relief $11.36M
93.067 Score95 - Sustaining Hiv Epidemic Control Through Efficient Case Finding and Quality Care and Treatment Services in Malawi Under Pepfar $10.78M
98.001 Usaid Lesotho - Push $10.72M
93.067 Egpaf Accelerating Lesotho's Progress to Epidemic Control Through Health System Strengthening and Delivery of Comprehensive Hiv/tb Care, Treatment and Prevention Services Under Pepfar $9.88M
93.067 Improving Quality of Care and Health Impact Through Innovative Systems and Technologies in Malawi Under the President's Emergency Plan for Aids Relief $9.49M
98.001 Usaid/southern Africa's Attain & Sustain 95-95-95, Prevent New Infections and Reach All Populations for Epidemic Control (aspire) $6.66M
98.001 Usaid Ihap - Drc $4.61M
98.001 Usaid/uganda Health Activity $4.54M
93.067 Achieving Hiv Epidemic Control Through Scaling Up Quality Testing, Care and Treatment in Malawi Under Pepfar $4.37M
12.350 Drc Dhapp-Fardc Elikya Project $4.16M
93.067 Vukisha 95 - Kenya - Py2 $2.68M
98.001 Usaid Uganda (rhites) $1.82M
93.067 Covid - Targeted Programmatic Support Across Countries Under the Global Fund to Fight Hiv/aids, Tuberculosis and Malaria and Under the President's Emergency Plan for Aids Relief $1.65M
93.067 Dhibiti Py1 $1.46M
93.067 Achieving and Maintaining Epidemic Control Through Comprehensive Hiv/aids Prevention, Care and Treatment Services in the Kinshasa Region of the Democratic Republic of Congo - Py2 $1.18M
93.067 Targeted Programmatic Support Across Countries Under the Global Fund to Fight Hiv/aids, Tuberculosis and Malaria and Under the President's Emergency Plan for Aids Relief $968,157
93.067 Covid - Egpaf Accelerating Lesotho's Progress to Epidemic Control Through Health System Strengthening and Delivery of Comprehensive Hiv/tb Care, Treatment and Prevention Services Under Pepfar $627,566
98.001 Covid - Usaid Lesotho - Push $454,668
98.001 Usaid/tanzania’s Client-Centered Health Program Covid - Hiv and Tuberculosis Northern $448,531
98.001 Supporting, Mobilizing, and Accelerating Research for Tuberculosis Elimination (smrt4tb) $426,952
93.067 Dhibiti Py2 $375,337
98.001 Covid - Usaid/southern Africa's Attain & Sustain 95-95-95, Prevent New Infections and Reach All Populations for Epidemic Control (aspire) $298,686
93.067 Covid - Develop, Implement, and Sustain High Quality Comprehensive Hiv Cascade Activities for Children, Adolescents, and Adults in Facility and Community Based Settings in Cameroon Under the President`s Emergency Plan for Aids Relief $263,543
98.001 Covid - Usaid Ihap - Drc $222,942
12.350 Covid - Department of Defense (dod) Hiv/aids Prevention Program $191,176
93.067 Covid - Project Alcancar - Advancing Sustainable Implementation of Comprehensive Hiv/tb Services for Epidemic Control in Mozambique $142,010
93.067 Achieving and Maintaining Epidemic Control Through Comprehensive Hiv/aids Prevention, Care and Treatment Services in the Kinshasa Region of the Democratic Republic of Congo - Py3 $62,145
98.001 Usaid Tanzania - Chsd $22,917
93.067 Covid - Improving Quality of Care and Health Impact Through Innovative Systems and Technologies in Malawi Under the President's Emergency Plan for Aids Relief $15,328
93.067 Vukisha 95 $11,205
93.067 Implementation of Programs for the Prevention, Care and Treatment of Hiv/aids in the Republic of Côte D'ivoire Under Pepfar $5,599
93.067 Strengthening the Capacity of Faith-Based Organizations (fbos) and Faith-Based Health Systems to Sustain the Role of Fbos in A Coordinated Response to Hiv/aids $43
93.067 Supporting the Implementation and Expansion of High Quality, Sustainable and Comprehensive Hiv Prevention, Care and Treatment Programs in the Western Region and Turkana County of the Republic of Kenya Under Pepfar $-9,250
93.067 Achieving and Maintaining Epidemic Control Through Comprehensive Hiv/aids Prevention, Care and Treatment Services in the Kinshasa Region of the Democratic Republic of Congo - 2021 $-17,472
12.350 Department of Defense (dod) Hiv/aids Prevention Program $-189,151