Audit 44238

Federal Program: Research and Development Cluster Federal Assistance Listing Number: Various Federal Agency: Various Award Year: Various Criteria: The OMB Compliance Supplement notes the excerpt below as one of the Allowable Cost criteria: c. Costs did not consist of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law). Condition and Context: During of testwork of 76 expenditures during the current year, we identified four expenditures that were not an allowable expenditure to the federal grant. Management charged nonpayroll expenses that had not been incurred as of year-end to a federal grant. Stipends for an 8-week summer program relating to Grant 6117 (Pomona Research in Mathematics Experience), ALN: 47.049, that ran from June 9, 2022 to August 6, 2022 were partially incurred by year-end (June 30, 2022), but charged entirely to the grant in FY22. Per the contract with the hired Research Assistants, stipends were to be made in two installments, whereby the second installment relates to the portion of the expenditure incurred after year-end. The second installment was charged to the grant in FY22, before the Research Assistants completed their grant-related work. This questioned cost represents the entire amount of the stipends paid in FY22 that relate to grant-related work performed after June 30, 2022. Isolated or Systemic: Isolated. Cause and Effect: The College?s control failed in detecting timely that unallowable costs were charged to the Research and Development Cluster. Questioned Costs: $16,588. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all expenditures charged to the Research and Development Cluster are for allowable costs. View of Responsible Officials: Finance staff are working with the Director of Sponsored Research to better align stipend payment schedules with our fiscal year-end. Appropriate schedules for the variety of grant-funded summer research will be communicated to the Primary Investigators and academic department staff. Accounts Payable staff will be instructed to reject any participant payment requests that are not in accordance with the approved schedules. Additionally, reviews of each grant payment will be performed at the time of the payment request and in July, as part of our year-end close process, to identify any grant expenses that may have been charged to the incorrect fiscal year and reclassify them accordingly.

Federal Program: Research and Development Cluster Federal Assistance Listing Number: Various Federal Agency: Various Award Year: Various Criteria: The OMB Compliance Supplement notes the excerpt below as one of the Allowable Cost criteria: c. Costs did not consist of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law). Condition and Context: During of testwork of 76 expenditures during the current year, we identified four expenditures that were not an allowable expenditure to the federal grant. Management charged nonpayroll expenses that had not been incurred as of year-end to a federal grant. Stipends for an 8-week summer program relating to Grant 6117 (Pomona Research in Mathematics Experience), ALN: 47.049, that ran from June 9, 2022 to August 6, 2022 were partially incurred by year-end (June 30, 2022), but charged entirely to the grant in FY22. Per the contract with the hired Research Assistants, stipends were to be made in two installments, whereby the second installment relates to the portion of the expenditure incurred after year-end. The second installment was charged to the grant in FY22, before the Research Assistants completed their grant-related work. This questioned cost represents the entire amount of the stipends paid in FY22 that relate to grant-related work performed after June 30, 2022. Isolated or Systemic: Isolated. Cause and Effect: The College?s control failed in detecting timely that unallowable costs were charged to the Research and Development Cluster. Questioned Costs: $16,588. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all expenditures charged to the Research and Development Cluster are for allowable costs. View of Responsible Officials: Finance staff are working with the Director of Sponsored Research to better align stipend payment schedules with our fiscal year-end. Appropriate schedules for the variety of grant-funded summer research will be communicated to the Primary Investigators and academic department staff. Accounts Payable staff will be instructed to reject any participant payment requests that are not in accordance with the approved schedules. Additionally, reviews of each grant payment will be performed at the time of the payment request and in July, as part of our year-end close process, to identify any grant expenses that may have been charged to the incorrect fiscal year and reclassify them accordingly.