FAC Explorer

Finding 600015 (2022-003)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2023-04-28
Audit: 19410
Organization: Medical University of South Carolina (SC)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The University drew $4,035 in taxes before making payments, violating reimbursement rules.
  • Impacted Requirements: Non-federal entities must pay costs before requesting reimbursement as per 2 CFR section 200.305(b)(3).
  • Recommended Follow-Up: Strengthen procurement controls to ensure all costs are paid prior to reimbursement requests.

Finding Text

Finding No. 2022-003 Cash Management Federal Program Research and Development Cluster ALNs ALN 93.396, 93.279, 93.846 Federal Agencies Department of Health and Human Services Federal Award Years July 1, 2021 to June 30, 2022 Criteria or Requirement Per 2 CFR section 200.305(b)(3), non-federal entities that are funded under the reimbursement method are required to pay for the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition and Context For 3 of the 40 samples tested, taxes were properly accrued as allowable costs but were drawn prior to payment by the University. While these costs are deemed allowable, they were not paid for prior to seeking reimbursement from the federal agency. The taxes drawn prior to payment totaled $4,035 out of a total of $784,941 tested in the sample of 40. Cause and Potential Effect The control to ensure that all costs were paid for prior to seeking reimbursement was not operating effectively to identify instances of noncompliance related to the applicable taxes. Questioned Cost The known unallowable costs identified in our sample items totaled $4,035. Management?s analysis identified a total of $51,803. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat of a Finding in the Immediately Prior Audit This is not a repeat finding. Recommendation We recommend that the University strengthen its processes and controls within the procurement office to ensure that all costs are paid prior to seeking reimbursement. View of Responsible Officials Management of the University takes no exception to this reported finding and has subsequently paid the applicable taxes and related interest. We have implemented the remedial actions as outlined in our Corrective Action Plan.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 23569 2022-002
    Significant Deficiency
  • 23570 2022-002
    Significant Deficiency
  • 23571 2022-003
    Significant Deficiency
  • 23572 2022-003
    Significant Deficiency
  • 23573 2022-003
    Significant Deficiency
  • 600011 2022-002
    Significant Deficiency
  • 600012 2022-002
    Significant Deficiency
  • 600013 2022-003
    Significant Deficiency
  • 600014 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $101.66M
93.498 Provider Relief Fund $5.99M
93.342 Health Professions Student Loans, Including Primary Care Loans/loans for Disadvantaged Students $5.96M
93.364 Nursing Student Loans $3.03M
93.211 Telehealth Programs $2.81M
93.351 Research Infrastructure Programs $2.52M
84.038 Federal Perkins Loan Program $2.20M
93.264 Nurse Faculty Loan Program (nflp) $1.58M
93.398 Cancer Research Manpower $1.51M
93.917 Hiv Care Formula Grants $1.51M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $978,702
84.425 Education Stabilization Fund $971,682
93.884 Grants for Primary Care Training and Enhancement $821,034
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $810,747
16.575 Crime Victim Assistance $788,925
93.279 Drug Abuse and Addiction Research Programs $651,678
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $629,843
93.247 Advanced Nursing Education Grant Program $590,106
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $589,707
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $562,673
81.136 Long-Term Surveillance and Maintenance $462,911
47.083 Integrative Activities $437,878
16.582 Crime Victim Assistance/discretionary Grants $418,256
93.236 Grants to States to Support Oral Health Workforce Activities $357,081
93.396 Cancer Biology Research $290,929
97.044 Assistance to Firefighters Grant $289,410
93.839 Blood Diseases and Resources Research $286,761
93.191 Graduate Psychology Education Program and Patient Navigator and Chronic Disease Prevention Program $219,659
84.063 Federal Pell Grant Program $215,903
93.788 Opioid Str $206,626
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $204,144
93.859 Biomedical Research and Research Training $199,698
84.007 Federal Supplemental Educational Opportunity Grants $199,619
84.033 Federal Work-Study Program $172,315
93.844 Acl Centers for Independent Living, Recovery Act $146,662
93.939 Hiv Prevention Activities_non-Governmental Organization Based $145,477
93.732 Mental and Behavioral Health Education and Training Grants $125,836
93.877 Autism Collaboration, Accountability, Research, Education, and Support $120,293
10.555 National School Lunch Program $114,340
16.123 Community-Based Violence Prevention Program $103,776
93.855 Allergy, Immunology and Transplantation Research $102,465
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $99,973
93.394 Cancer Detection and Diagnosis Research $92,376
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $91,694
93.395 Cancer Treatment Research $91,617
93.959 Block Grants for Prevention and Treatment of Substance Abuse $83,379
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $80,146
93.393 Cancer Cause and Prevention Research $78,999
93.867 Vision Research $78,587
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $64,594
43.008 Education $62,984
43.003 Exploration $48,838
93.350 National Center for Advancing Translational Sciences $47,753
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $47,502
93.866 Aging Research $41,567
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $40,325
97.030 Community Disaster Loans $37,159
93.361 Nursing Research $36,556
93.124 Nurse Anesthetist Traineeships $35,584
93.113 Environmental Health $26,880
84.324 Research in Special Education $26,632
93.360 Biomedical Advanced Research and Development Authority (barda), Biodefense Medical Countermeasure Development $25,949
93.103 Food and Drug Administration_research $23,451
93.GSA_MIGRATION Other Federal Assistance $21,253
93.399 Cancer Control $20,356
93.516 Affordable Care Act (aca) Public Health Training Centers Program $20,048
93.837 Cardiovascular Diseases Research $19,254
47.041 Engineering $18,404
93.110 Maternal and Child Health Federal Consolidated Programs $17,151
12.420 Military Medical Research and Development $14,962
93.242 Mental Health Research Grants $14,837
93.213 Research and Training in Complementary and Integrative Health $14,622
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $12,265
93.130 Cooperative Agreements to States/territories for the Coordination and Development of Primary Care Offices $10,597
93.121 Oral Diseases and Disorders Research $10,227
93.397 Cancer Centers Support Grants $9,346
12.999 Engineering Acoustics $8,968
93.061 Innovations in Applied Public Health Research $8,303
93.310 Trans-Nih Research Support $6,571
93.059 Training in General, Pediatric, and Public Health Dentistry $4,704
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3,942
93.273 Alcohol Research Programs $3,851
93.307 Minority Health and Health Disparities Research $3,078
45.024 Promotion of the Arts_grants to Organizations and Individuals $2,253
93.077 Family Smoking Prevention and Tobacco Control Act Regulatory Research $2,046
93.879 Medical Library Assistance $1,840
93.838 Lung Diseases Research $1,372
93.389 National Center for Research Resources $1,104
93.068 Chronic Diseases: Research, Control, and Prevention $973
93.865 Child Health and Human Development Extramural Research $610
93.989 International Research and Research Training $230
93.945 Assistance Programs for Chronic Disease Prevention and Control $-61
47.GSA_MIGRATION Sc Epscor/idea Clemson University $-185
93.173 Research Related to Deafness and Communication Disorders $-258
93.226 Research on Healthcare Costs, Quality and Outcomes $-454
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $-4,007
64.GSA_MIGRATION Other Federal Assistance $-5,374
47.081 Office of Experimental Program to Stimulate Competitive Research $-7,212