Finding 971201 (2023-003)

Assistance Listing, Federal Agency, and Program Name - 93.354 U.S. Department of Health and Human Services, Research & Development (R&D) Cluster, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Federal Award Identification Number and Year - PH-2-533 Pass through Entity - Clemson University Finding Type - Significant deficiency Repeat Finding - No Criteria Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with § 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Several versions of the SEFA were provided during the audit period and in the final review, the College identified a missing grant to be reported in the R&D cluster, which resulted in additional audit testing. For the R&D Cluster, ALN 93.354 (Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response), expenditures reported on the SEFA were understated by $229,506. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. For the R&D Cluster, ALN 93.354 (Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response), expenditures reported on the SEFA were understated by $229,506. This error has has been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement process to ensure that the SEFA is prepared timely and that it is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The College will ensure that the schedule of federal awards (SEFA) is reviewed for completeness. Going forward, the SEFA will compared with the prior year SEFA and a separate schedule of new awards for the current fiscal period. The results of this comparison will be reviewed by the grants office, the controller’s office and the Vice President’s office. This will increase the level of reviews to a three tiered process which should address issues of completeness of the SEFA.