Finding 613202 (2022-002)

Significant Deficiency
Requirement
BC
Questioned Costs
$1
Year
2022
Accepted
2023-05-25
Audit: 35130
Organization: Portland Va Research Foundation (OR)

AI Summary

  • Core Issue: The Foundation improperly requested reimbursement for costs without receiving invoices from VAPORHCS, leading to potential noncompliance with federal requirements.
  • Impacted Requirements: Costs must be adequately documented and controls should minimize delays between receiving and disbursing federal funds.
  • Recommended Follow-Up: Implement procedures to ensure reimbursement requests are based on actual invoices and enhance communication with VAPORHCS for timely invoicing.

Finding Text

Finding Number: 2022-002 Finding Type: Federal award finding Federal Assistance Listing No.: n/a Program Name: R&D Cluster Federal Agency: Agency for Healthcare Research and Quality Pass-Through Entity: n/a Grant Number: 93-75Q80122C00002 & 93-HHSA290201700003C Federal Award Year: 2022 Control Deficiency Type: Significant deficiency over compliance Instance of Noncompliance: Yes Compliance requirement: Allowable Costs and Cash Management Questions Costs: Yes Repeat Finding: No Criteria: Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Subpart E ? Cost Principles provides that costs charges to a federal award must be adequately documented. Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Subpart D ? Post Federal Award Requirements, requires that an organization establish and maintain effective controls to minimize the time elapsing between the receipt of federal funds and the disbursement of such funds. Condition: During the audit, we noted that that the Foundation requested reimbursement for costs incurred based on a signed Memorandum of Understanding for the provision of services to be provided by the VAPORHCS. Although the services were provided in accordance with the Memorandum of Understanding, the VAPORHCS never invoiced the Foundation for the services it provided. Subsequent to year-end, the questioned costs were resolved with the funds returned to the VAPORHCS. Cause: The Foundation did not have an effective system into place to monitor receipt of invoices and payments for services related to various Memorandums of Understanding entered into with the VAPORHCS. Effect: Costs charged were not properly documented. The Foundation could have accidently charged the federal agency for costs that had not been incurred. In addition, the Foundation did not comply with the requirements to minimize the time elapsing between the receipt of federal funds and the disbursement of such funds. Questioned Costs: $95,399. Audit Recommendation: We recommend that the organization implement procedures to ensure that reimbursement requests are based on actual invoices. Management?s Response: Explanation of disagreement with the audit finding. There is no disagreement with the audit findings. Action taken in response to the finding. Once this deficiency was identified, PVARF immediately contacted the VA Portland Health Care System to determine if invoicing would be forthcoming. When it was made clear that there was no forthcoming invoicing, the sponsor was contacted to determine refund steps. Ultimately, the funds that were inappropriately billed were returned to the agency. Action Plan. In addition to ensuring effective communication between the stakeholders, PVARF implemented standard follow-up protocols to make certain VAPORHCS is invoicing PVARF timely. PVARF is in the process of implementing a project management platform that will effectively and efficiently manage major milestones such as invoicing for grants, contracts, and clinical trials. It was also made clear to PVARF administrative staff that there will be no billing ahead of the receipt of invoices on any agreements, and that doing so is a breech of the executed contract. Name(s) of the contact people responsible for correction action. Admin Staff Team Plan completion date for corrective action plan. July 31, 2023

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 36758 2022-002
    Significant Deficiency
  • 36759 2022-003
    Significant Deficiency
  • 36760 2022-002
    Significant Deficiency
  • 36761 2022-003
    Significant Deficiency
  • 613200 2022-002
    Significant Deficiency
  • 613201 2022-003
    Significant Deficiency
  • 613203 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.RD Ahrq Src III $995,339
93.RD Ahrq Src IV $312,368
12.750 Uniformed Services University Medical Research Projects $231,125
47.075 Social, Behavioral, and Economic Sciences $197,808
93.145 Aids Education and Training Centers $195,257
93.855 Allergy, Immunology and Transplantation Research $78,425
93.865 Child Health and Human Development Extramural Research $72,796
93.310 Trans-Nih Research Support $51,831
12.420 Military Medical Research and Development $37,116
93.866 Aging Research $26,182
93.173 Research Related to Deafness and Communication Disorders $11,918
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $8,815