Finding 597316 (2022-003)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 23232
Organization: Corewell Health & Affiliates (MI)

AI Summary

  • Core Issue: Management lacks policies for documented review and approval of 100% of employee effort certifications, risking inaccuracies in federal grant charges.
  • Impacted Requirements: Non-compliance with 2 CFR Section 200.303 regarding internal controls over federal awards, specifically for Corewell Health West and East.
  • Recommended Follow-Up: Update policies to mandate review of all employee effort certifications and ensure knowledgeable reviewers are assigned for approvals.

Finding Text

Finding 2022-003 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various, Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: 1/1/2022-12/31/2022 Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the 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: Management does not have policies and procedures that require documented review and approval of 100% of each employee?s effort certification related to Corewell Health West. Management does document the review and approval of employee effort associated with grants. Management does not have a control over the review and approval of effort certifications for physicians related to Corewell Health East. Cause: Management?s policy over effort reporting for Corewell Health West was designed to only require the documented review and approval of the grant effort and not 100% of an employee?s effort, which includes effort spent on administrative responsibilities. Management?s policy related to Corewell Health East effort for physicians who are not the principal investigator who charge time to the R&D grants does not require their effort report be reviewed and approved by someone who is knowledgeable of the grant. Effect or Potential Effect: Effort charged to a federal grant may be inaccurate. Questioned Costs: None. Context: For Corewell Health West, we tested 40 payroll transactions ($172,432). Per inspection of the effort certifications for each employee, the effort associated to R&D was reviewed and approved. The review and approval of the employees? administrative effort was not documented. Corewell Health West payroll costs were $3,621,173, which represents 34.5% of total R&D Cluster expenditures. For Corewell Health East, we tested 41 salary payroll transactions ($99,594). Per inspection of our selection support, 16 instances ($28,426) were related to physicians that did not have their R&D effort certification reviewed and approved for that certification period. Corewell Health East physician payroll costs were $433,781, which represents 4.1% of total R&D Cluster expenditures. The total R&D Cluster expenditures reported on the Schedule are $10,507,754 for the year ended December 31, 2022. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management should update its policies to require the reviewers to review 100% of each employee?s effort. Views of Responsible Officials: Corewell Health West utilizes Workday Grants Management to document the employee self-certification for 100% of each employee?s effort. In addition to the employee self-certification, Management will enable Workday functionality to route the effort certification for approval to a reviewer with knowledge of 100% of the employee?s effort. Corewell Health East will update their Research Time and Effort Reporting policy to reflect that review of the monthly RI Time and Effort Report for Physicians submitted by physicians who are involved as key personnel on federal grants or applicable direct expense reimbursement mechanisms, whether or not compensation is received, will be reviewed by an individual who is familiar with the technical/scientific progress of the award.

Categories

Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20836 2022-003
    Material Weakness
  • 20837 2022-004
    Material Weakness
  • 20838 2022-003
    Material Weakness
  • 20839 2022-003
    Material Weakness
  • 20840 2022-001
    Material Weakness Repeat
  • 20841 2022-003
    Material Weakness
  • 20842 2022-003
    Material Weakness
  • 20843 2022-006
    Significant Deficiency Repeat
  • 20844 2022-003
    Material Weakness
  • 20845 2022-004
    Material Weakness
  • 20846 2022-003
    Material Weakness
  • 20847 2022-004
    Material Weakness
  • 20848 2022-003
    Material Weakness
  • 20849 2022-005
    Significant Deficiency
  • 20850 2022-001
    Material Weakness Repeat
  • 20851 2022-003
    Material Weakness
  • 20852 2022-003
    Material Weakness
  • 20853 2022-004
    Material Weakness
  • 20854 2022-003
    Material Weakness
  • 20855 2022-004
    Material Weakness
  • 20856 2022-003
    Material Weakness
  • 20857 2022-004
    Material Weakness
  • 20858 2022-003
    Material Weakness
  • 20859 2022-004
    Material Weakness
  • 20860 2022-003
    Material Weakness
  • 20861 2022-004
    Material Weakness
  • 20862 2022-003
    Material Weakness
  • 20863 2022-005
    Significant Deficiency
  • 20864 2022-003
    Material Weakness
  • 20865 2022-004
    Material Weakness
  • 20866 2022-003
    Material Weakness
  • 20867 2022-005
    Significant Deficiency
  • 20868 2022-003
    Material Weakness
  • 20869 2022-006
    Significant Deficiency Repeat
  • 20870 2022-003
    Material Weakness
  • 20871 2022-004
    Material Weakness
  • 20872 2022-003
    Material Weakness
  • 20873 2022-004
    Material Weakness
  • 20874 2022-003
    Material Weakness
  • 20875 2022-004
    Material Weakness
  • 20876 2022-003
    Material Weakness
  • 20877 2022-004
    Material Weakness
  • 20878 2022-001
    Material Weakness Repeat
  • 20879 2022-003
    Material Weakness
  • 20880 2022-003
    Material Weakness
  • 20881 2022-004
    Material Weakness
  • 20882 2022-003
    Material Weakness
  • 20910 2022-004
    Material Weakness
  • 20911 2022-003
    Material Weakness
  • 20912 2022-004
    Material Weakness
  • 20913 2022-003
    Material Weakness
  • 20914 2022-004
    Material Weakness
  • 20915 2022-003
    Material Weakness
  • 20916 2022-004
    Material Weakness
  • 20917 2022-003
    Material Weakness
  • 20918 2022-006
    Significant Deficiency Repeat
  • 20919 2022-003
    Material Weakness
  • 20920 2022-006
    Significant Deficiency Repeat
  • 20921 2022-003
    Material Weakness
  • 20922 2022-004
    Material Weakness
  • 20923 2022-003
    Material Weakness
  • 20924 2022-006
    Significant Deficiency Repeat
  • 20925 2022-003
    Material Weakness
  • 20926 2022-003
    Material Weakness
  • 20927 2022-004
    Material Weakness
  • 20928 2022-003
    Material Weakness
  • 20929 2022-006
    Significant Deficiency Repeat
  • 20930 2022-003
    Material Weakness
  • 20931 2022-006
    Significant Deficiency Repeat
  • 20932 2022-003
    Material Weakness
  • 20933 2022-006
    Significant Deficiency Repeat
  • 20934 2022-001
    Material Weakness Repeat
  • 20935 2022-002
    Significant Deficiency Repeat
  • 20936 2022-003
    Material Weakness
  • 20937 2022-004
    Material Weakness
  • 20938 2022-003
    Material Weakness
  • 20939 2022-004
    Material Weakness
  • 20940 2022-003
    Material Weakness
  • 20941 2022-006
    Significant Deficiency Repeat
  • 20942 2022-003
    Material Weakness
  • 20943 2022-006
    Significant Deficiency Repeat
  • 20944 2022-003
    Material Weakness
  • 20945 2022-004
    Material Weakness
  • 20946 2022-003
    Material Weakness
  • 20947 2022-004
    Material Weakness
  • 20948 2022-003
    Material Weakness
  • 20949 2022-004
    Material Weakness
  • 20950 2022-003
    Material Weakness
  • 20951 2022-004
    Material Weakness
  • 20952 2022-003
    Material Weakness
  • 20953 2022-003
    Material Weakness
  • 20954 2022-005
    Significant Deficiency
  • 20955 2022-003
    Material Weakness
  • 20956 2022-004
    Material Weakness
  • 20957 2022-003
    Material Weakness
  • 21170 2022-004
    Material Weakness
  • 21171 2022-003
    Material Weakness
  • 21172 2022-004
    Material Weakness
  • 21173 2022-003
    Material Weakness
  • 21174 2022-003
    Material Weakness
  • 21175 2022-005
    Significant Deficiency
  • 21176 2022-003
    Material Weakness
  • 21177 2022-006
    Significant Deficiency Repeat
  • 21178 2022-003
    Material Weakness
  • 21179 2022-005
    Significant Deficiency
  • 21180 2022-003
    Material Weakness
  • 21181 2022-004
    Material Weakness
  • 21182 2022-003
    Material Weakness
  • 21302 2022-006
    Significant Deficiency Repeat
  • 21303 2022-003
    Material Weakness
  • 21304 2022-004
    Material Weakness
  • 21305 2022-003
    Material Weakness
  • 21306 2022-004
    Material Weakness
  • 21307 2022-001
    Material Weakness Repeat
  • 21308 2022-003
    Material Weakness
  • 21309 2022-003
    Material Weakness
  • 21310 2022-003
    Material Weakness
  • 21311 2022-003
    Material Weakness
  • 21312 2022-004
    Material Weakness
  • 21313 2022-001
    Material Weakness Repeat
  • 21314 2022-005
    Significant Deficiency
  • 21315 2022-001
    Material Weakness Repeat
  • 21316 2022-003
    Material Weakness
  • 21317 2022-006
    Significant Deficiency Repeat
  • 597278 2022-003
    Material Weakness
  • 597279 2022-004
    Material Weakness
  • 597280 2022-003
    Material Weakness
  • 597281 2022-003
    Material Weakness
  • 597282 2022-001
    Material Weakness Repeat
  • 597283 2022-003
    Material Weakness
  • 597284 2022-003
    Material Weakness
  • 597285 2022-006
    Significant Deficiency Repeat
  • 597286 2022-003
    Material Weakness
  • 597287 2022-004
    Material Weakness
  • 597288 2022-003
    Material Weakness
  • 597289 2022-004
    Material Weakness
  • 597290 2022-003
    Material Weakness
  • 597291 2022-005
    Significant Deficiency
  • 597292 2022-001
    Material Weakness Repeat
  • 597293 2022-003
    Material Weakness
  • 597294 2022-003
    Material Weakness
  • 597295 2022-004
    Material Weakness
  • 597296 2022-003
    Material Weakness
  • 597297 2022-004
    Material Weakness
  • 597298 2022-003
    Material Weakness
  • 597299 2022-004
    Material Weakness
  • 597300 2022-003
    Material Weakness
  • 597301 2022-004
    Material Weakness
  • 597302 2022-003
    Material Weakness
  • 597303 2022-004
    Material Weakness
  • 597304 2022-003
    Material Weakness
  • 597305 2022-005
    Significant Deficiency
  • 597306 2022-003
    Material Weakness
  • 597307 2022-004
    Material Weakness
  • 597308 2022-003
    Material Weakness
  • 597309 2022-005
    Significant Deficiency
  • 597310 2022-003
    Material Weakness
  • 597311 2022-006
    Significant Deficiency Repeat
  • 597312 2022-003
    Material Weakness
  • 597313 2022-004
    Material Weakness
  • 597314 2022-003
    Material Weakness
  • 597315 2022-004
    Material Weakness
  • 597317 2022-004
    Material Weakness
  • 597318 2022-003
    Material Weakness
  • 597319 2022-004
    Material Weakness
  • 597320 2022-001
    Material Weakness Repeat
  • 597321 2022-003
    Material Weakness
  • 597322 2022-003
    Material Weakness
  • 597323 2022-004
    Material Weakness
  • 597324 2022-003
    Material Weakness
  • 597352 2022-004
    Material Weakness
  • 597353 2022-003
    Material Weakness
  • 597354 2022-004
    Material Weakness
  • 597355 2022-003
    Material Weakness
  • 597356 2022-004
    Material Weakness
  • 597357 2022-003
    Material Weakness
  • 597358 2022-004
    Material Weakness
  • 597359 2022-003
    Material Weakness
  • 597360 2022-006
    Significant Deficiency Repeat
  • 597361 2022-003
    Material Weakness
  • 597362 2022-006
    Significant Deficiency Repeat
  • 597363 2022-003
    Material Weakness
  • 597364 2022-004
    Material Weakness
  • 597365 2022-003
    Material Weakness
  • 597366 2022-006
    Significant Deficiency Repeat
  • 597367 2022-003
    Material Weakness
  • 597368 2022-003
    Material Weakness
  • 597369 2022-004
    Material Weakness
  • 597370 2022-003
    Material Weakness
  • 597371 2022-006
    Significant Deficiency Repeat
  • 597372 2022-003
    Material Weakness
  • 597373 2022-006
    Significant Deficiency Repeat
  • 597374 2022-003
    Material Weakness
  • 597375 2022-006
    Significant Deficiency Repeat
  • 597376 2022-001
    Material Weakness Repeat
  • 597377 2022-002
    Significant Deficiency Repeat
  • 597378 2022-003
    Material Weakness
  • 597379 2022-004
    Material Weakness
  • 597380 2022-003
    Material Weakness
  • 597381 2022-004
    Material Weakness
  • 597382 2022-003
    Material Weakness
  • 597383 2022-006
    Significant Deficiency Repeat
  • 597384 2022-003
    Material Weakness
  • 597385 2022-006
    Significant Deficiency Repeat
  • 597386 2022-003
    Material Weakness
  • 597387 2022-004
    Material Weakness
  • 597388 2022-003
    Material Weakness
  • 597389 2022-004
    Material Weakness
  • 597390 2022-003
    Material Weakness
  • 597391 2022-004
    Material Weakness
  • 597392 2022-003
    Material Weakness
  • 597393 2022-004
    Material Weakness
  • 597394 2022-003
    Material Weakness
  • 597395 2022-003
    Material Weakness
  • 597396 2022-005
    Significant Deficiency
  • 597397 2022-003
    Material Weakness
  • 597398 2022-004
    Material Weakness
  • 597399 2022-003
    Material Weakness
  • 597612 2022-004
    Material Weakness
  • 597613 2022-003
    Material Weakness
  • 597614 2022-004
    Material Weakness
  • 597615 2022-003
    Material Weakness
  • 597616 2022-003
    Material Weakness
  • 597617 2022-005
    Significant Deficiency
  • 597618 2022-003
    Material Weakness
  • 597619 2022-006
    Significant Deficiency Repeat
  • 597620 2022-003
    Material Weakness
  • 597621 2022-005
    Significant Deficiency
  • 597622 2022-003
    Material Weakness
  • 597623 2022-004
    Material Weakness
  • 597624 2022-003
    Material Weakness
  • 597744 2022-006
    Significant Deficiency Repeat
  • 597745 2022-003
    Material Weakness
  • 597746 2022-004
    Material Weakness
  • 597747 2022-003
    Material Weakness
  • 597748 2022-004
    Material Weakness
  • 597749 2022-001
    Material Weakness Repeat
  • 597750 2022-003
    Material Weakness
  • 597751 2022-003
    Material Weakness
  • 597752 2022-003
    Material Weakness
  • 597753 2022-003
    Material Weakness
  • 597754 2022-004
    Material Weakness
  • 597755 2022-001
    Material Weakness Repeat
  • 597756 2022-005
    Significant Deficiency
  • 597757 2022-001
    Material Weakness Repeat
  • 597758 2022-003
    Material Weakness
  • 597759 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $42.18M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $37.66M
93.697 Covid-19 Testing for Rural Health Clinics $2.86M
93.461 Covid-19 Testing for the Uninsured $2.52M
93.926 Healthy Start Initiative $1.15M
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $619,279
93.226 Research on Healthcare Costs, Quality and Outcomes $531,913
93.310 Trans-Nih Research Support $371,812
93.889 National Bioterrorism Hospital Preparedness Program $260,332
93.914 Hiv Emergency Relief Project Grants $235,882
93.778 Medical Assistance Program $136,376
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $132,730
93.276 Drug-Free Communities Support Program Grants $125,000
93.307 Minority Health and Health Disparities Research $103,701
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $89,375
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $77,452
93.866 Aging Research $71,524
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $64,319
93.361 Nursing Research $57,417
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $55,102
93.867 Vision Research $52,369
93.110 Maternal and Child Health Federal Consolidated Programs $50,836
93.136 Injury Prevention and Control Research and State and Community Based Programs $49,600
93.178 Nursing Workforce Diversity $48,380
93.395 Cancer Treatment Research $44,000
93.994 Maternal and Child Health Services Block Grant to the States $34,588
93.837 Cardiovascular Diseases Research $33,000
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $31,525
93.855 Allergy, Immunology and Transplantation Research $29,353
93.217 Family Planning_services $29,288
99.RD Nhlbi Mds Trial $27,500
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $22,447
93.301 Small Rural Hospital Improvement Grant Program $20,511
93.397 Cancer Centers Support Grants $17,628
93.859 Biomedical Research and Research Training $17,150
93.838 Lung Diseases Research $15,863
93.268 Immunization Cooperative Agreements $12,800
93.350 National Center for Advancing Translational Sciences $10,487
93.959 Block Grants for Prevention and Treatment of Substance Abuse $10,237
93.213 Research and Training in Complementary and Integrative Health $10,118
12.300 Basic and Applied Scientific Research $7,079
93.940 Hiv Prevention Activities_health Department Based $5,804
12.420 Military Medical Research and Development $5,100
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $4,575
93.788 Opioid Str $3,564
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $2,425
93.279 Drug Abuse and Addiction Research Programs $1,910
93.393 Cancer Cause and Prevention Research $1,796
93.839 Blood Diseases and Resources Research $1,750
93.399 Cancer Control $1,000
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $892
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $316
93.103 Food and Drug Administration_research $201