2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-008. Non-Payroll Expenditures Did Not Receive Adequate Reviews (Finding Type: Significant Deficiency, Other) Federal Agency: Department of Health and Human Services Assistance Listing Number and Title: Research and Development Cluster (Various ALNs) Federal Award Number: Various Questioned Costs: None Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A The University of Utah (University) did not perform adequate reviews on three of 40 non-payroll expenditures transactions selected for review from the Research and Development (R&D) Cluster projects. According to the University’s policies, non-payroll expenditures are required to have one or both of the following controls procedures to be performed: • Review and approval of individual expenditures by the R&D project’s Principal Investigator (PI), or other appropriate personnel, at the time of purchase. • Timely review and approval of monthly Management Reports by the R&D project’s PI, Account Executive (AE), or a designated alternate. Pursuant to University Policy 3-003, this “Evidence of Review should ordinarily be completed within one month of receipt of the management reports.” In addition, 2 CFR 200.303 requires non-federal entities to establish, document, and maintain effective internal controls to provide reasonable assurance that it manages the federal awards in compliance with federal requirements. Due to a lack of understanding of the importance of reviewing expenditures, as well as travel or technological issues, two expenditures were not reviewed in accordance with the University’s policy. Additionally, a clerical accounting error caused the third expenditure to be recorded in the wrong accounting period and it was not effectively reviewed to prevent the error. Without implementing proper controls, expenditures for unallowable activities or costs are more likely to be charged to federally funded projects without being detected and corrected. Recommendations: We recommend that the R&D project’s PIs perform the following as required by the University’s policy: • Review management reports and complete the evidence of review (EOR) process within the allotted time frame; and • Effectively perform review and approval of individual transactions. University’s Response: The University agrees with the finding.
2024-010. HTF Project Does Not Meet Eligible Income Requirements (Finding Type: Significant Deficiency, Reportable Noncompliance) Federal Agency: Department of Housing and Urban Development Assistance Listing Number and Title: 14.275 Housing Trust Fund Federal Award Number: Various Questioned Costs: N/A Pass-through Entity: N/A Prior Year Single Audit Report Finding Number: N/A During eligibility reviews, DWS did not detect that a tenant in a Housing Trust Fund (HTF) assisted unit did not meet the income requirements to occupy the HTF-assisted unit. This error occurred because the tenant’s income was entered as $17,115 instead of $18,115 actual reported income, which exceeds the income limitation for this location of $17,400. The review by DWS also did not identify that this apartment complex did not have the specified one, two, and three-bedroom units available for HTF-assisted occupancy as outlined by the deed restrictions for this HTF-constructed apartment complex. Borrowers that are not in compliance with these deed restrictions could face DWS opting to call and make payable in full the HTF loan. 2 CFR 200.303 requires that “the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Without effective internal controls, ineligible tenants may be allowed to occupy HTF-assisted housing, thus limiting the availability of units for eligible extremely low-income families. Recommendation: We recommend that DWS strengthen its internal control to better determine that all HTF assisted housing units contain only income eligible tenants. DWS’s Response: DWS agrees with the finding.
Develop Written Policies and Procedures Criteria: 2 CFR 200.303 requires nonfederal entities to establish and maintain effective internal control over federal awards to provide reasonable assurance that organizations who manage the federal award: • Understand and comply with the federal statutes, regulations, and terms and conditions of the award; • Evaluate and monitor compliance; • Take prompt action when instances of noncompliance is identified. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, the Uniform Guidance requires non-federal entities to develop written procedures related to the following areas: 1. Cash Management 2 CFR 200.302(b)(6) states that the financial management system of each non-Federal entity must provide for the written procedures to implement the requirements of 2 CFR 200.305 Federal Payment. 2. Equipment Management Requirements Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e). In addition, the organizations should ensure that existing written procedures are in compliance with: a. General Procurement Standards 2 CFR 200.318 to 200.327 discusses that contracts must be established and managed in accordance with the procurement requirements in 2 CFR Part 200. Grantees must have written procurement policies and procedures that demonstrate a fair and reliable process, with standards of conduct addressing conflicts of interest, for obtaining grant-funded goods and services. Condition MARTA does not have comprehensive written policies and procedures concerning the following key compliance areas which are required by the Uniform Guidance: Equipment and Real Property Management MARTA has an Asset Inventory Policy and Procedures, however, it does not clearly define the policies and procedures that are in place for the use, management and disposition of equipment acquired under a Federal award in accordance with 2 CFR sections 200.313(c) through (e). Cash Management MARTA does not have written procedures to implement the requirements of 2 CFR 200.305 Federal Payment. Procurement, Suspension and Debarment MARTA has a Procurement policy, however, documented procedures are not well-defined regarding the purchase process for different types of procurement, obtaining quotations, bidding, and procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause MARTA’s reliance on informal business practices leads to inconsistencies in its internal controls. Effect The absence of formal policies and procedures in the key compliance areas could result in non-compliance with federal regulations, which may lead to unnecessary sanctions. Additionally, without formal written policies and procedures, it is difficult to ensure consistent practices across the organization. Questioned Costs None Recommendation MARTA should develop and implement formal written policies and procedures for the specific areas required by the Uniform Guidance. These policies and procedures must clearly delineate the requirements of the Uniform Guidance. Personnel responsible for these areas should receive adequate training and apply the policies effectively. Regular reviews should be conducted to update the policies and procedures as needed. Views of Responsible Officials and Planned Corrective Action MARTA has grown substantially in the last several years. This progress includes identifying areas that we need to update or to develop new processes and documentation. MARTA has an Asset Inventory Policy and Procedures in which the purpose is to ensure that fixed assets are properly accounted for, identified, and tracked. MARTA also has Cash Handling Policy and Procedures which addresses safeguarding public funds and maximizing resources available. This is designed to reduce the risks associated with the collection, receipts storage and reporting of cash transactions and to safeguard and maintain the security and integrity of MARTA's fiscal assets. MARTA is in the process of updating the Procurement Policy. MARTA will review and update these policies and/or create new policies to make sure that they are compliant with the Uniform Guidance. The updated or newly created policies will be brought to the October 2025 Board of Directors meeting for Board review or approval. Personnel responsible: Sandy Benson, General Manager Anticipated completion date: October 2025
Develop Written Policies and Procedures Criteria: 2 CFR 200.303 requires nonfederal entities to establish and maintain effective internal control over federal awards to provide reasonable assurance that organizations who manage the federal award: • Understand and comply with the federal statutes, regulations, and terms and conditions of the award; • Evaluate and monitor compliance; • Take prompt action when instances of noncompliance is identified. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, the Uniform Guidance requires non-federal entities to develop written procedures related to the following areas: 1. Cash Management 2 CFR 200.302(b)(6) states that the financial management system of each non-Federal entity must provide for the written procedures to implement the requirements of 2 CFR 200.305 Federal Payment. 2. Equipment Management Requirements Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e). In addition, the organizations should ensure that existing written procedures are in compliance with: a. General Procurement Standards 2 CFR 200.318 to 200.327 discusses that contracts must be established and managed in accordance with the procurement requirements in 2 CFR Part 200. Grantees must have written procurement policies and procedures that demonstrate a fair and reliable process, with standards of conduct addressing conflicts of interest, for obtaining grant-funded goods and services. Condition MARTA does not have comprehensive written policies and procedures concerning the following key compliance areas which are required by the Uniform Guidance: Equipment and Real Property Management MARTA has an Asset Inventory Policy and Procedures, however, it does not clearly define the policies and procedures that are in place for the use, management and disposition of equipment acquired under a Federal award in accordance with 2 CFR sections 200.313(c) through (e). Cash Management MARTA does not have written procedures to implement the requirements of 2 CFR 200.305 Federal Payment. Procurement, Suspension and Debarment MARTA has a Procurement policy, however, documented procedures are not well-defined regarding the purchase process for different types of procurement, obtaining quotations, bidding, and procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause MARTA’s reliance on informal business practices leads to inconsistencies in its internal controls. Effect The absence of formal policies and procedures in the key compliance areas could result in non-compliance with federal regulations, which may lead to unnecessary sanctions. Additionally, without formal written policies and procedures, it is difficult to ensure consistent practices across the organization. Questioned Costs None Recommendation MARTA should develop and implement formal written policies and procedures for the specific areas required by the Uniform Guidance. These policies and procedures must clearly delineate the requirements of the Uniform Guidance. Personnel responsible for these areas should receive adequate training and apply the policies effectively. Regular reviews should be conducted to update the policies and procedures as needed. Views of Responsible Officials and Planned Corrective Action MARTA has grown substantially in the last several years. This progress includes identifying areas that we need to update or to develop new processes and documentation. MARTA has an Asset Inventory Policy and Procedures in which the purpose is to ensure that fixed assets are properly accounted for, identified, and tracked. MARTA also has Cash Handling Policy and Procedures which addresses safeguarding public funds and maximizing resources available. This is designed to reduce the risks associated with the collection, receipts storage and reporting of cash transactions and to safeguard and maintain the security and integrity of MARTA's fiscal assets. MARTA is in the process of updating the Procurement Policy. MARTA will review and update these policies and/or create new policies to make sure that they are compliant with the Uniform Guidance. The updated or newly created policies will be brought to the October 2025 Board of Directors meeting for Board review or approval. Personnel responsible: Sandy Benson, General Manager Anticipated completion date: October 2025
Develop Written Policies and Procedures Criteria: 2 CFR 200.303 requires nonfederal entities to establish and maintain effective internal control over federal awards to provide reasonable assurance that organizations who manage the federal award: • Understand and comply with the federal statutes, regulations, and terms and conditions of the award; • Evaluate and monitor compliance; • Take prompt action when instances of noncompliance is identified. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, the Uniform Guidance requires non-federal entities to develop written procedures related to the following areas: 1. Cash Management 2 CFR 200.302(b)(6) states that the financial management system of each non-Federal entity must provide for the written procedures to implement the requirements of 2 CFR 200.305 Federal Payment. 2. Equipment Management Requirements Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e). In addition, the organizations should ensure that existing written procedures are in compliance with: a. General Procurement Standards 2 CFR 200.318 to 200.327 discusses that contracts must be established and managed in accordance with the procurement requirements in 2 CFR Part 200. Grantees must have written procurement policies and procedures that demonstrate a fair and reliable process, with standards of conduct addressing conflicts of interest, for obtaining grant-funded goods and services. Condition MARTA does not have comprehensive written policies and procedures concerning the following key compliance areas which are required by the Uniform Guidance: Equipment and Real Property Management MARTA has an Asset Inventory Policy and Procedures, however, it does not clearly define the policies and procedures that are in place for the use, management and disposition of equipment acquired under a Federal award in accordance with 2 CFR sections 200.313(c) through (e). Cash Management MARTA does not have written procedures to implement the requirements of 2 CFR 200.305 Federal Payment. Procurement, Suspension and Debarment MARTA has a Procurement policy, however, documented procedures are not well-defined regarding the purchase process for different types of procurement, obtaining quotations, bidding, and procedures for verifying that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded. Cause MARTA’s reliance on informal business practices leads to inconsistencies in its internal controls. Effect The absence of formal policies and procedures in the key compliance areas could result in non-compliance with federal regulations, which may lead to unnecessary sanctions. Additionally, without formal written policies and procedures, it is difficult to ensure consistent practices across the organization. Questioned Costs None Recommendation MARTA should develop and implement formal written policies and procedures for the specific areas required by the Uniform Guidance. These policies and procedures must clearly delineate the requirements of the Uniform Guidance. Personnel responsible for these areas should receive adequate training and apply the policies effectively. Regular reviews should be conducted to update the policies and procedures as needed. Views of Responsible Officials and Planned Corrective Action MARTA has grown substantially in the last several years. This progress includes identifying areas that we need to update or to develop new processes and documentation. MARTA has an Asset Inventory Policy and Procedures in which the purpose is to ensure that fixed assets are properly accounted for, identified, and tracked. MARTA also has Cash Handling Policy and Procedures which addresses safeguarding public funds and maximizing resources available. This is designed to reduce the risks associated with the collection, receipts storage and reporting of cash transactions and to safeguard and maintain the security and integrity of MARTA's fiscal assets. MARTA is in the process of updating the Procurement Policy. MARTA will review and update these policies and/or create new policies to make sure that they are compliant with the Uniform Guidance. The updated or newly created policies will be brought to the October 2025 Board of Directors meeting for Board review or approval. Personnel responsible: Sandy Benson, General Manager Anticipated completion date: October 2025
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268, 84.007, 84.033 Federal Award Identification Number: P007A233144, P063P231946, P033A233144, P268K241946 Award Period: July 1, 2023 – June 30, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Per 2 CFR section 200.303(a), a nonfederal entity must: Establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During the audit, it was observed that the University did not have adequate segregation of duties in its financial aid office and did not maintain supporting documentation. The Director of Financial Aid prepares is responsible for authorizing, processing, and reviewing transactions related to Title IV funds. Questioned Costs: N/A Context: Effective internal controls are crucial to ensure funds are properly managed and disbursed. There are instances where the Director of Financial Aid is reviewing and approving financial aid packages, reconciliations and other required reports. We also noted instances were supporting documentation could not be provided. Cause: The University’s financial aid processes have overlapping responsibilities which has resulted in inadequate segregation of duties. Effect: The absence of proper segregation of duties increases risk for errors, noncompliance, and inaccuracies in awarding and reporting of Title IV funds. Repeat Finding: No Recommendation: We recommend the University implement additional internal controls to ensure proper segregation of duties. This includes hiring additional staff or redistributing responsibilities to separate the functions of authorizing, processing, and reviewing transactions. Additionally, ongoing training should be provided to financial aid staff on the importance of internal controls and compliance with Title IV regulations. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.