AUDIT AND COMPLIANCE HOT TOPICS MRAM August 2024

Transcript:AUDIT AND COMPLIANCE HOT TOPICS MRAM August 2024:
AUDIT AND COMPLIANCE HOT TOPICS MRAM August 2024 Matt Gardner Post Award Fiscal Compliance Recent NSF Audits at Other Universities Gift Cards “…recipient charged $4,000 to the award for the purchase of 40 $100 gift cards. Although recipient provided documentation to support that 37 of the 40 gift cards were distributed to the award research participants, recipient did not provide documentation to support the remaining three, or $300.” Unused gift cards cannot be charged to an award and the cost must be covered by non-sponsored funding. If unused cards are used to benefit a subsequent award, the cost of the cards can be transferred to that award. MRAM – Matt Gardner – PAFC Participant Support “recipient inappropriately used $7,099 in participant support cost funds budgeted for the award to cover costs incurred to hire a consultant to host an award-related workshop. Because the consultant was not a conference participant and because recipient did not receive or request approval to rebudget participant support cost funding to cover consultant costs, these costs are unallowable.” Participant support costs can only be used to support participants of a workshop, conference or training, not staff or other individuals hosting or providing the event. To use Participant Support costs for non-participants requires prior written approval from the sponsor. MRAM – Matt Gardner – PAFC Compliance with Internal Cost Transfer Policy “…recipient processed a cost transfer to move $3,048 in salary expenses to the award. However, recipient originally posted the expenses in September 2020, and it did not obtain the PI’s approval to process the cost transfer, which occurred later than 90 days after the original transaction date.” Universities must follow their own internal policies. Failure to follow internal policies can result in an audit finding from our sponsors. MRAM – Matt Gardner – PAFC Inadequately Supported Expenses – Outside Services “…recipient charged the award for $2,823 in website development service expenses but did not provide a service agreement or other documentation to support the scope of services provided…” If it’s not readily apparent from an agreement or contract how a cost benefits the award, additional justifications should be drafted to explain the necessity, scope, and cost of the service. MRAM – Matt Gardner – PAFC Disposition of items purchased on Awards Scenario During the course of an award, supplies were purchased that are no longer needed by the Department/PI after the end of the award. What