The Fogarty CenterNon-Profit

Condition: The Center did not complete and submit their financial related audit of their federal awards to Health Resources and Services Administration ("HRSA"), or their designee, by the due date of September 30, 2024. Criteria: 45 CFR §75.501 requires organizations that complete a Generally Accepted Government Auditing Standards Financial Audit under 45 CFR §75.216 to submit a financial related audit in accordance with Government Auditing Standards by the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause: The audit was not completed until December 2024, due to information not being available to complete the audit by September 30, 2024, due to a turnover in staffing. Effect: May impact future funding from HRSA. Recommendation: We recommend the Center continue efforts to ensure future audits are filed timely with HRSA, or its designee. Views of responsible officials: Management of the Center agrees with the finding. The Center will ensure future audits are filed timely with HRSA, or its designee.

Condition: The Center's final quarter bonus calculation spreadsheet used a calculation, which was inconsistent with prior quarters, resulting in an extra day being included in the calculation. Criteria: Companies are required to utilize consistent methodology to calculate amounts considered allowable expenses. Cause: Because the calculation was inconsistent, the Center overpaid bonuses, which are considered unallowed expenditures claimed on the grant. Recommendation: We recommend that the Center strengthen its review of tracking spreadsheets to ensure that accurate information is accurately reported. Views of responsible officials: Management of the Center agrees with the finding. The Company's corrective action plan is included at the end of this report.

Condition: The Center reported eight out of eight submissions late. Criteria: Companies are required to maintain relevant and reliable documentation related to expenditures claimed on cost reimbursement grants. Further, the funding under the Coronavirus State and Local Fiscal Recovery Funds require Workforce and Expenditure Reports to be submitted two weeks after the last day of the reporting period. Cause: Due to inaccurate tracking of reporting dates, submission of the quarterly Workforce and Expenditure Reports were not submitted timely by the Center. Effect: May impact future funding. Recommendation: We recommend that the Center strengthen its review of reporting dates to ensure future reporting submissions are filed timely. Views of responsible officials: Management of the Center agrees with the finding. The Center's corrective action plan is included at the end of this report.

Condition: The Center did not complete and submit their financial related audit of their federal awards to Health Resources and Services Administration ("HRSA"), or their designee, by the due date of September 30, 2023. Criteria: 45 CFR §75.501 requires organizations that complete a Generally Accepted Government Auditing Standards Financial Audit under 45 CFR §75.216 to submit a financial related audit in accordance with Government Auditing Standards by the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause: The audit was not completed until February 26, 2024, due to information not being available to complete the audit by September 30, 2023, due to a turnover in staffing. Effect: May impact future funding from HRSA. Recommendation: We recommend the Center continue efforts to ensure future audits are filed timely with HRSA, or its designee. Views of responsible officials: Management of the Center agrees with the finding. The Center will ensure future audits are filed timely with HRSA, or its designee.

Condition: The Center's internal tracking spreadsheet did not agree to the quarterly reporting submissions for three out of ten submissions and the Center reported nine out of ten submissions late. Criteria: Companies are required to maintain relevant and reliable documentation related to expenditures claimed on cost reimbursement grants. Further, the funding under the Coronavirus State and Local Fiscal Recovery Funds require Workforce and Expenditure Reports to be submitted two weeks after the last day of the reporting period. Cause: Because the client's internal tracking included payroll accruals and estimates which were amended after year end and there is improper review of the Center's internal tracking spreadsheet, the Center reported inaccurate expenditures claimed on the grant. Additionally, due to the inaccurate tracking of report dates, submission of the quarterly Workforce and Expenditure Reports were not submitted timely by the Center. Recommendation: We recommend that the Center strengthen its review of tracking spreadsheets to ensure that accurate information is accurately reported and continue efforts to ensure future reporting submissions are filed timely. Views of responsible officials: Management of the Center agrees with the finding. The Company's corrective action plan is included at the end of this report.

Section III ? Federal Award Findings and Questioned Costs Finding 2021-01: Late Audit Reporting Condition: The Center did not complete and submit their financial related audit of their federal awards to Health Resources and Services Administration ("HRSA"), or their designee, by the due date of September 30, 2022. Criteria: 45 CFR ?75.501 requires organizations that complete a Generally Accepted Government Auditing Standards Financial Audit under 45 CFR ?75.216 to submit a financial related audit in accordance with Government Auditing Standards by the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause: The audit was not completed until December 2, 2022, due to information not being available to complete the audit by September 30, 2022. Effect: May impact future funding from HRSA. Recommendation: We recommend the Center continue efforts to ensure future audits are filed timely with HRSA, or its designee. Views of responsible officials: Management of the Center agrees with the finding. The Center will ensure future audits are filed timely with HRSA, or its designee.

2020-01 Timely approval of timesheets Condition: During the testing of the Workforce Stabilization Grant ("WFS"), it was discovered that four of sixty tested employees timecards were not approved in a timely manner leading to improperly excluding hours in total worked hours and an underpayment in bonuses. Criteria: Funding under WFS shall be used to increase compensation for qualified employees earning less than $20 per hour. Employees who work thirty hours a week or more are eligible for a $200 weekly increase; from twenty-two to twenty- nine hours per week are eligible for a $150 weekly increase; from fifteen to twenty-one hours per week are eligible for a $100 weekly increase. Cause: The Center's management did not approve the timecards in a timely fashion. Effect: Due to late approval of timecards, the worked time was not accounted for in bonus calculations leading to a bonus underpayment of $650. Recommendation: The Center should check to ensure all timecards are approved before payroll is processed.

2020-02 Manual calculation errors Condition: During the testing of the Home and Community Based Services Access Program Grant ("Access"), it was discovered that four of thirty tested employees bonus calculations were completed incorrectly. Criteria: Funding under Access shall be used to compensate new and existing direct support staff. If direct support staff are employed less than thirty hours per week, the payroll bonus is to be prorated based on their employment level. Cause: A manual spreadsheet was kept of all employee hours and time period. Effect: For one employee, an incorrect time period was utilized leading to an underpayment of a bonus of $210. For three employees, average hours worked per week were incorrectly calculated, leading to an overpayment of bonuses totaling $1,200. Recommendation: In order to properly determine and remit bonuses, the Center should: (i) complete calculations using excel formulas rather than manual determination, and (ii) have multiple levels of review over complex calculations. Views of Responsible Officials and Planned Corrective Actions: The Fogarty Center agrees with the findings. The Center's views and corrective action plan is included at the end of this report.