research administrator meeting

1. Research Administrator Meeting Tuesday, October 17, 2006

2. Audit Issues � Recent Internal Audit Findings Sponsored Research Account Monitoring Deficits Cost Share NIH Salary Cap Misclassification of expenses Timely completion of PARs

3. Audit Issues � Recent Internal Audit Findings Financial Management Monthly Reconciliation of Statement of Accounts/Transaction Detail Statement Split purchases to get under threshold Verifying purchases against PO Timely submission of PCard vouchers Cash handling

4. Audit Issues � Recent Internal Audit Findings General Lack of appropriate record retention

5. Audit Issues � Recent Federal Audit Findings Yale University February 2006 DHHS OIG (Department of Health & Human Services � Office of Inspector General) Audit of subaward from University of Massachusetts Medical School Under a prime NIH grant � award $572,000 for period 2/1/2001-8/31/2002

6. Audit Issues � Recent Federal Audit Findings Findings: Cost transfers � salary and other costs � late transfers were not authorized properly, could not be reconciled with acctg records, & lacked clear, specific, detailed explanations Effort reporting � unsigned effort reports Level of effort � greater than 25 percent reduction of PIs committed effort Cost allocation method � methodology not recognized & documentation did not justify amounts allocated

7. Audit Issues � Recent Federal Audit Findings Other issues: Subaward was made to Yale four months after the project started Some of the costs incurred during four month period were originally charged to other sponsored projects In some instances, the sponsored project accounts that held the original charges were in overrun status at the time of the cost transfer

8. Audit Issues � Recent Federal Audit Findings DHHS OIG recommended disallowances of approx. $194,000

9. Audit Issues � Recent Federal Audit Findings At the end of June: NSF, NIH & DOD all requested, via subpoenas, documentation pertaining to 47 grants and contracts totaling approx. $47 million awarded to Yale during the last decade

10. Audit Issues � Recent Federal Audit Findings What can we learn from this? Use Advance Accounts when appropriate Importance of good cost transfer policies, practices that scrutinize cost transfers & thorough documentation Cost transfers are a target of federal scrutiny, particularly when costs are being transferred from another project When the other project is in deficit status, it is even more difficult to defend cost transfers

11. Cost Transfers What are we doing? Internal subgroup has been established Analysis: How many cost transfers are occurring? Who is submitting cost transfers? Why are they submitting cost transfers? Are we obtaining appropriate justification? Expand subgroup to include staff from campus � will be seeking volunteers; let me know if you are interested Develop University policies to require adequate justification and review Determine if we have appropriate controls in place � do we need to modify our systems?

12. OMB A-21 Costing Issues � Direct Charging to Federal Grants Effective July 1, 1997, the salary and benefits of administrative and clerical staff and certain general expenses, including office supplies, postage, local telephone costs and memberships in professional and scientific organizations, are not allowed as direct charges to federally sponsored agreements, except in special circumstances http://research.uiowa.edu/dsp/main/index.php?get=adminsal&PassToURL="clerical�

13. OMB A-21 Costing Issues � Direct Charging to Federal Grants What are we doing? Continue to make campus aware of issue Currently reviewing A-21 and UI expense classifications In November � establish subgroup to review findings and current classifications � include staff from GAO, DSP and possibly campus Determine if additional guidelines are necessary Establish/improve central monitoring

14. Next Meeting Tuesday, March 20, 2007 10:00-12:00 Braley Auditorium - 1136 Pomerantz Family Pavilion