EIN: 251462312
UEI: J3Z5MNJJ3FZ4
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 31, 2021. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 31, 2021 (1852 days ago).
What is a management decision? →A sample of 40 employees was tested during the current year audit. Of the 40 employees tested, payroll costs for a total of 3 employees were improperly allocated among MWRIF departments. Payroll costs for 2 of the 3 employees were improperly allocated between individual federal research and development grants by small amounts. See chart below for questioned costs. Questioned Costs: Please see table on page 43 of the MWRIF's Single Audit. Context: The minor allocation differences noted for the 3 of 40 employees tested were not detected by MWRIF's controls as of June 30, 2020. Extrapolation of these errors to the entire population found the differences were not material to the financial statements or to the individual grants involved. However, the errors indicated that the controls should be evaluated to ensure more material errors could not occur. The exceptions occurred prior to September 2019 and a new payroll system was implemented by MWRIF?s payroll agent in July 2019. Cause/Effect: As illustrated above, certain individual research and development grants were overcharged, and others were undercharged for payroll costs. This was a result of the inaccurate translation of the EPAR forms into the payroll processing system. Improperly allocated payroll costs for the periods tested totaled $942 and represented less than 1.20% of total payroll costs tested. Identification as a Repeat Finding: This is a repeat of finding 2019-001 from the prior audit. Recommendation: We understand that MWRIF implemented additional procedures in this area in December 2019. MWRIF should continue to re-evaluate its internal control system to ensure that the payroll allocations, as stated on the EPAR forms are accurately translated to the payroll processing system so that these allocations are entered accurately into the time attendance system and that any corrections needed are performed accurately and in a timely manner. Views of Responsible Officials and Planned Corrective Actions: A more formal process has been developed for comparing PAR forms, Kronos timekeeping data, and pay registers to identify salary allocation variances. The processes were instituted in December 2019 and have been fine-tuned throughout fiscal year 2020.
Show full finding ▾Hide full finding ▴Finding 2020-001: Payroll Allocation Program Name: Research and Development Cluster (R&D) Criteria of Specific Requirement: In accordance with 2 CFR 200.405, a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objectives in accordance with relative benefits received. Condition: A sample of 40 employees was tested during the current year audit. Of the 40 employees tested, payroll costs for a total of 3 employees were improperly allocated among MWRIF departments. Payroll costs for 2 of the 3 employees were improperly allocated between individual federal research and development grants by small amounts. See chart below for questioned costs. Questioned Costs: Please see table on page 43 of the MWRIF's Single Audit. Context: The minor allocation differences noted for the 3 of 40 employees tested were not detected by MWRIF's controls as of June 30, 2020. Extrapolation of these errors to the entire population found the differences were not material to the financial statements or to the individual grants involved. However, the errors indicated that the controls should be evaluated to ensure more material errors could not occur. The exceptions occurred prior to September 2019 and a new payroll system was implemented by MWRIF?s payroll agent in July 2019. Cause/Effect: As illustrated above, certain individual research and development grants were overcharged, and others were undercharged for payroll costs. This was a result of the inaccurate translation of the EPAR forms into the payroll processing system. Improperly allocated payroll costs for the periods tested totaled $942 and represented less than 1.20% of total payroll costs tested. Identification as a Repeat Finding: This is a repeat of finding 2019-001 from the prior audit. Recommendation: We understand that MWRIF implemented additional procedures in this area in December 2019. MWRIF should continue to re-evaluate its internal control system to ensure that the payroll allocations, as stated on the EPAR forms are accurately translated to the payroll processing system so that these allocations are entered accurately into the time attendance system and that any corrections needed are performed accurately and in a timely manner. Views of Responsible Officials and Planned Corrective Actions: A more formal process has been developed for comparing PAR forms, Kronos timekeeping data, and pay registers to identify salary allocation variances. The processes were instituted in December 2019 and have been fine-tuned throughout fiscal year 2020.
CORRECTIVE ACTION PLAN January 12, 2021 Department of Health and Human Services Magee-Womens Research Institute and Foundation respectfully submits the following corrective action plan for the year ended June 30, 2020. Name and address of independent public accounting firm: Maher Duessel 503 Martindale Street Suite 600 Pittsburgh, PA 15212 Audit period: 7/1/2019-6/30/2020 The finding from the June 30, 2020 schedule of findings and questioned costs is discussed below and is identified with the finding number assigned in the schedule. Finding 2020-001: Payroll Allocation Program Name: Research and Development Cluster (R&D) Auditor Recommendation: We understand that MWRIF implemented additional procedures in this area in December 2019. MWRIF should continue to re-evaluate its internal control system to ensure that the payroll allocations, as stated on the EPAR forms are accurately translated to the payroll processing system so that these allocations are entered accurately into the time attendance system and that any corrections needed are performed accurately and in a timely manner. Action Taken: A more formal process has been developed for comparing PAR forms, Kronos timekeeping data, and pay registers to identify salary allocation variances. The processes were instituted in December 2019 and have been fine-tuned throughout fiscal year 2020. It should be noted that the 2 samples identified as improperly allocated occurred prior to implementation of the new processes in December 2019. A 100% review of all staff salary allocations is completed monthly to identify variances between the above listed sources and appropriate steps are taken to correct the differences. The process is more formal and comprehensive than in prior years. Recognizing that the existing allocation process is not ideal, and the review process is manual, management is continuing to research additional opportunities to improve both the initial allocation process and the subsequent review process, including purchasing software to automate more of the process. The details of the process follow: The initial internal control which was in place prior to December 2019 required that each manager review their respective staff?s salary allocations when they signed off on their time in the timekeeping system at the end of each pay period. Effective in December 2019, a back-end review process was added to ensure that the intended allocation occurred and that it had been formally approved. Each employee has been assigned to a specific individual in the grant business office. The assigned business office personnel are responsible for reviewing the salary allocation for their assigned employees at the end of each pay period. A report is generated based on data from the payroll system that details the actual salary allocation to the various grants and cost centers for that pay period. The information on this report is compared to the approved payroll allocation authorization forms (EPAR forms) that are maintained in a separate file. Any variances between the authorized allocation and the actual allocation are identified and a correcting journal entry drafted as needed. This entry is reviewed and approved by the grant manager assigned to the account, and then passed on to the accounting manager for final posting to the general ledger. Since implementation of the initial process changes in December 2019 additional improvements have been made and evaluation of the controls is ongoing. The compliance manager must also approve any changes to the payroll allocation authorization form to ensure the requested changes are appropriate, and to provide a central control over the approval documentation. At the present time the compliance manager is also conducting a 100% audit of all FY21 payroll allocations recorded to date as well as the biweekly allocation reviews as another layer of control. Since this is a very labor-intensive process overall, management is exploring opportunities to automate more of the functions to minimize human error and improve process efficiency. If the Department of Health and Human Services has questions regarding this plan, please do not hesitate to contact me at 412-641-8957, or ascell@mwri.magee.edu. Respectfully, Lisa Ascencio Director of Finance
2019-001
FAC accepted this audit on April 1, 2020 — management decision was due October 1, 2020.
A sample of 40 employees was tested during the current year audit. Of the 40 employees tested, payroll costs for 2 employees were improperly allocated among individual research and development grants by small amounts. See chart below for questioned costs. Questioned Costs: Please see table on pages 37-38 of the MWRIF's Single Audit. Context: The minor allocation differences noted for the 2 of 40 employees tested were not detected by MWRIF's controls as of June 30, 2019. Extrapolation of these errors to the entire population found the differences were not material to the financial statements or to the individual grants involved. However, the errors indicated that the controls should be evaluated to ensure more material errors could not occur. Cause/Effect: As illustrated above, certain individual research and development grants were overcharged, and others were undercharged for payroll costs. This was a result of the inaccurate translation of the EPAR forms into the payroll processing system. Improperly allocated payroll costs for the periods tested totaled $734 and represented less than 1.0% of total payroll costs tested. Identification as a Repeat Finding: There were no findings in the prior year. Recommendation: MWRIF should re-evaluate its internal control system to ensure that the payroll allocations, as stated on the EPAR forms are accurately translated to the payroll processing system so that these allocations are entered accurately into the time attendance system. Views of Responsible Officials and Planned Corrective Actions: Though internal controls are currently in place to monitor payroll allocations, these controls are very manual and therefore more susceptible to human error. In order to improve controls and avoid future errors, a more standardized monthly review process has been developed, along with a corresponding report to facilitate the review and streamline the process. The monthly review will be coordinated by specific individuals to ensure ongoing and consistent compliance. The initial process is being rolled out in December 2019.
Show full finding ▾Hide full finding ▴Finding 2019-001: Payroll Allocation Program Name: Research and Development Cluster (R&D) Criteria of Specific Requirement: In accordance with 2 CFR 200.405, a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objectives in accordance with relative benefits received. Condition: A sample of 40 employees was tested during the current year audit. Of the 40 employees tested, payroll costs for 2 employees were improperly allocated among individual research and development grants by small amounts. See chart below for questioned costs. Questioned Costs: Please see table on pages 37-38 of the MWRIF's Single Audit. Context: The minor allocation differences noted for the 2 of 40 employees tested were not detected by MWRIF's controls as of June 30, 2019. Extrapolation of these errors to the entire population found the differences were not material to the financial statements or to the individual grants involved. However, the errors indicated that the controls should be evaluated to ensure more material errors could not occur. Cause/Effect: As illustrated above, certain individual research and development grants were overcharged, and others were undercharged for payroll costs. This was a result of the inaccurate translation of the EPAR forms into the payroll processing system. Improperly allocated payroll costs for the periods tested totaled $734 and represented less than 1.0% of total payroll costs tested. Identification as a Repeat Finding: There were no findings in the prior year. Recommendation: MWRIF should re-evaluate its internal control system to ensure that the payroll allocations, as stated on the EPAR forms are accurately translated to the payroll processing system so that these allocations are entered accurately into the time attendance system. Views of Responsible Officials and Planned Corrective Actions: Though internal controls are currently in place to monitor payroll allocations, these controls are very manual and therefore more susceptible to human error. In order to improve controls and avoid future errors, a more standardized monthly review process has been developed, along with a corresponding report to facilitate the review and streamline the process. The monthly review will be coordinated by specific individuals to ensure ongoing and consistent compliance. The initial process is being rolled out in December 2019.
CORRECTIVE ACTION PLAN March 3, 2020 Department of Health and Human Services Magee-Womens Research Institute and Foundation respectfully submits the following corrective action plan for the year ended June 30, 2019. Name and address of independent public accounting firm: Maher Duessel 503 Martindale Street Suite 600 Pittsburgh, PA 15212 Audit period: 7/1/2018-6/30/2019 The finding from the June 30, 2019 schedule of findings and questioned costs is discussed below and is identified with the finding number assigned in the schedule. Finding 2019-001: Payroll Allocation Program Name: Research and Development Cluster (R&D) Recommendation: MWRIF should re-evaluate its internal control system to ensure that the payroll allocations, as stated on the EPAR forms are accurately translated to the payroll processing system so that these allocations are entered accurately into the time attendance system. Action Taken: Though internal controls are currently in place to monitor payroll allocations, these controls are very manual and therefore more susceptible to human error. In order to improve controls and avoid future errors, a more standardized monthly review process has been developed, along with a corresponding report to facilitate the review and streamline the process. The monthly review will be coordinated by specific individuals to ensure ongoing and consistent compliance. The initial process was initiated in December 2019. The details of the process follow: The existing internal control requires that each manager review their respective staffs salary allocations when they sign off on their time in the timekeeping system. We have now added an additional back end review process. One individual in the department has been assigned to review and audit payroll at the end of each pay period. A report is generated based on data from the payroll system that details the actual salary allocation to the various grants and cost centers for that pay period. The information on this report is compared to the approved payroll allocation authorization forms (EPAR forms) that are maintained in a separate file. Any variances between the authorized allocation and the actual allocation are identified and a correcting journal entry drafted as needed. This entry is reviewed and approved by the grant manager assigned to the account, and then passed on to the accounting manager for final posting to the general ledger. If the Department of Health and Human Services has questions regarding this plan, please do not hesitate to contact me at 412-641-8957, or ascell@mwri.magee.edu. Respectfully, Lisa Ascencio Director of Finance
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