Finding 614793 (2022-001)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-05-29
Audit: 35886
Organization: New York Blood Center, Inc. (NY)

AI Summary

  • Core Issue: A material weakness in internal controls led to a $1,090,780 overdraw on federal funds due to a spreadsheet error.
  • Impacted Requirements: Compliance with 2 CFR Part 200.303(a) was not met, as effective controls over federal awards were lacking.
  • Recommended Follow-Up: Review and strengthen cash management approval policies, ensuring all drawdowns are reviewed and documented before execution.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: ? Diabetes, Digestive, and Kidney Diseases Extramural Research ? Mental Health Research Grants ? Blood Diseases and Resources Research ? Allergy and Infectious Diseases Research Assistance Listing Number: 93.847, 93.839, 93.242 and 93.855 Federal Award Identification Number and Year: ? R01HL140625-04 - November 30, 2021 to November 30, 2022 (ALN 93.839) ? R01HL145451 - July 1, 2021 to June 30, 2022 (ALN 93.839) ? R35HL161239 - March 1, 2022 to December 31, 2022 (ALN 93.839) ? P01HL149626 - July 1, 2021 to June 30, 2022 (ALN 93.839) ? R01MH118960 - March 1, 2021 to February 28, 2022 and March 1, 2022 to February 28, 2023 (ALN 93.242) ? R21MH124474 - June 1, 2021 to May 31, 2022 (ALN 93.242) ? R01AI104416 - February 1, 2021 to January 31, 2022 and February 1, 2022 to January 31, 2023 (ALN 93.855) ? R01AI078314 - March 1, 2021 to February 29, 2024 (ALN 93.855) ? R21AI153649 - June 1, 2021 to May 31, 2022 (ALN 93.855) ? U01AI60421 - August 1, 2021 to May 31, 2022 (ALN 93.855) ? P01DK032094 - August 1, 2021 to July 31, 2022 (ALN 93.847) ? R01HL155574 - July 1 2021 to May 31, 2022 (ALN 93.839) ? R21AI137790 - April 1, 2020 to March 31, 2022 (ALN 93.855) Type of Finding: ? Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: 2 CFR Part 200.303 (a) states that a non-federal entity must establish and maintain effective control over 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: During our testing of cash management in fiscal year 2021 audit, it was noted that there was a drawdown done in the first quarter of fiscal year 2022 that related to 2021 expenditures for which $1,090,780 was overdrawn (ALN: 93.847). Additionally, it was noted that there was no review done for the drawdown done of the first quarter of 2022 expenditures (All ALNs). Questioned costs: None. Context: We noted that the last 2021 drawdown done in 2022 was overdrawn by $1,090,780. However, it was noted as a result of the auditors bringing it to management's attention, the Organization reached out to the National Institute of Health and returned the funds on August 8, 2022 (ALN: 93.847). Furthermore, the first drawdown for 2022 expenditures was not reviewed (All ALNs). Cause: The overdraw of the funds was due to a formula error in the Organization's spreadsheet. The review issue was caused by management not following their procedures to ensure that they review the allowable expenditures spreadsheet before drawdowns are made. Effect: There was an overdraw on the last quarter of 2021 expenditures of $1,090,780 that was returned to the grantor on August 8, 2022. As a result of no review performed on the first quarter of 2022 expenditures, there could be errors not caught before drawdown. Repeat finding: No Recommendation: We recommend that the Organization review their approval policy around cash management and ensure review is performed before drawdowns and that evidence of this review is retained. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Cash Management Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 38348 2022-001
    Material Weakness
  • 38349 2022-001
    Material Weakness
  • 38350 2022-001
    Material Weakness
  • 38351 2022-001
    Material Weakness
  • 38352 2022-001
    Material Weakness
  • 38353 2022-001
    Material Weakness
  • 38354 2022-001
    Material Weakness
  • 38355 2022-001
    Material Weakness
  • 38356 2022-001
    Material Weakness
  • 38357 2022-001
    Material Weakness
  • 38358 2022-001
    Material Weakness
  • 38359 2022-001
    Material Weakness
  • 38360 2022-001
    Material Weakness
  • 38361 2022-001
    Material Weakness
  • 38362 2022-001
    Material Weakness
  • 38363 2022-001
    Material Weakness
  • 38364 2022-001
    Material Weakness
  • 38365 2022-001
    Material Weakness
  • 38366 2022-001
    Material Weakness
  • 38367 2022-001
    Material Weakness
  • 38368 2022-001
    Material Weakness
  • 38369 2022-001
    Material Weakness
  • 38370 2022-001
    Material Weakness
  • 38371 2022-001
    Material Weakness
  • 38372 2022-001
    Material Weakness
  • 38373 2022-001
    Material Weakness
  • 38412 2022-001
    Material Weakness
  • 38413 2022-001
    Material Weakness
  • 38414 2022-001
    Material Weakness
  • 38415 2022-001
    Material Weakness
  • 38416 2022-001
    Material Weakness
  • 38417 2022-001
    Material Weakness
  • 38418 2022-001
    Material Weakness
  • 38419 2022-001
    Material Weakness
  • 38420 2022-001
    Material Weakness
  • 614790 2022-001
    Material Weakness
  • 614791 2022-001
    Material Weakness
  • 614792 2022-001
    Material Weakness
  • 614794 2022-001
    Material Weakness
  • 614795 2022-001
    Material Weakness
  • 614796 2022-001
    Material Weakness
  • 614797 2022-001
    Material Weakness
  • 614798 2022-001
    Material Weakness
  • 614799 2022-001
    Material Weakness
  • 614800 2022-001
    Material Weakness
  • 614801 2022-001
    Material Weakness
  • 614802 2022-001
    Material Weakness
  • 614803 2022-001
    Material Weakness
  • 614804 2022-001
    Material Weakness
  • 614805 2022-001
    Material Weakness
  • 614806 2022-001
    Material Weakness
  • 614807 2022-001
    Material Weakness
  • 614808 2022-001
    Material Weakness
  • 614809 2022-001
    Material Weakness
  • 614810 2022-001
    Material Weakness
  • 614811 2022-001
    Material Weakness
  • 614812 2022-001
    Material Weakness
  • 614813 2022-001
    Material Weakness
  • 614814 2022-001
    Material Weakness
  • 614815 2022-001
    Material Weakness
  • 614854 2022-001
    Material Weakness
  • 614855 2022-001
    Material Weakness
  • 614856 2022-001
    Material Weakness
  • 614857 2022-001
    Material Weakness
  • 614858 2022-001
    Material Weakness
  • 614859 2022-001
    Material Weakness
  • 614860 2022-001
    Material Weakness
  • 614861 2022-001
    Material Weakness
  • 614862 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $983,985
93.395 Cancer Treatment Research $249,119
93.242 Mental Health Research Grants $166,359
93.837 Cardiovascular Diseases Research $154,043
93.839 Blood Diseases and Resources Research $147,819
93.867 Vision Research $135,791
93.103 Food and Drug Administration_research $124,540
93.855 Allergy, Immunology and Transplantation Research $104,710
93.000 U.s. Army Medical Research Acquisition Activity $43,756