Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Finding 2022-704: Research and Development Cluster?Unallowable Costs Background: During FY 2021-22, UW institutions were awarded $741.6 million in federal funding as part of the Research and Development Cluster, for which UW Madison expended the majority of the funding. UW Madison purchases a variety of supplies and other goods or services to conduct its research activities. Criteria: Under 2 CFR s. 200.303, UW Madison is responsible for establishing and maintaining effective internal control over federal awards that provides reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Further, 2 CFR s. 200.405 (a) specifies that for a cost to be allocable to a federal award the cost must be incurred specifically for the federal award; benefit both the federal award and other work; be distributed in proportions; be necessary to overall institutional operations; and be assignable, in part, to the federal award. Condition: We found that UW-Madison charged two unallowable costs to two federal awards during FY 2021 22. First, we found that UW Madison charged $54 for facilities and maintenance expenses relating to a location not used for purposes related to the federal award. Second, we found that UW Madison charged $596 in software license fees to a federal award. However, it is UW Madison?s practice to charge such fees to a nonfederal project. Context: During FY 2021-22, UW-Madison expended $86.9 million in certain nonpayroll expenses using federal Research and Development Cluster funding. There were 84,230 transactions comprising this amount with an average dollar amount of $1,032. We reviewed 40 such transactions to determine if the expenses were allowable under federal regulations. To complete our testing, we requested supporting documentation and information from UW-Madison for the transactions we reviewed. Questioned Costs: We questioned $650 in known questioned costs and an undetermined amount for other expenses we did not review. Because our testing was based upon a sample of payments it is likely there are additional cases where the payment is inappropriately charged to a federal award. We estimate these additional questioned costs are likely over $25,000, which is required to be reported under 2 CFR s. 200.516. Effect: UW-Madison used $650 in federal funds from the Research and Development Cluster for unallowable costs during FY 2021-22. Because unallowable costs were charged to the Research and Development Cluster, UW-Madison was not in compliance with federal requirements for the use of federal funding. Cause: UW-Madison staff indicated that the charges were applied to incorrect accounting codes when the expenses were originally recorded. For example, the $54 for facilities and maintenance expenses was charged to a federal award in the accounting system due to a limitation of certain billing codes for applying such expenses to the correct location of the work. These errors were not identified or corrected during the review of the payment or of other UW Madison monitoring activities. In December 2022 and January 2023, UW Madison corrected these accounting codes for these transactions and transferred the expenses to nonfederal projects. Recommendation: We recommend the University of Wisconsin Madison provide guidance and training to staff to ensure all costs are properly charged to federal award accounting codes and only costs allowable under federal regulations are charged to federal funds. Finding 2022-704: Research and Development Cluster?Unallowable Costs Research and Development Cluster (various Assistance Listing numbers) Award Numbers Award Years Various Various Questioned Costs: $650 Type of Finding: Noncompliance Response from the University of Wisconsin Madison: The University of Wisconsin-Madison agrees with the audit finding and recommendation.
Program: AL 21.023 ? COVID-19 Emergency Rental Assistance ? Allowability & Eligibility Grant Number & Year: N/A Federal Grantor Agency: U.S. Department of the Treasury Criteria: Per 2 CFR ? 1000.10 (January 1, 2022), the U.S. Department of the Treasury adopted the Uniform Administrative Requirements, Cost Principles, and Audit Requirements set forth at 2 CFR part 200. 2 CFR ? 200.303 (January 1, 2022) states, in relevant part, the following: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. . . . Good internal controls require risk assessments to be performed, and procedures to verify the validity of applicants prior to payment. 2 CFR ? 200.403 (January 1, 2022) states, in part: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. * * * * (g) Be adequately documented. The Nebraska ERA Program FAQ states, ?Who is eligible? You are eligible if you answer YES to ALL of the following: . . .Your landlord is not an immediate family member.? Division N ? Additional Coronavirus Response and Relief, Title V ? Banking, Section 501(k)(3)(A) of the Consolidated Appropriations Act, 2021, states that an eligible household is a household of one or more individuals that is obligated to pay rent on a residential dwelling. Good internal controls require procedures to verify the validity of applicants prior to payment. Condition: Procedures were not adequate to ensure that payments were allowable, and individuals were eligible for assistance. A similar finding was noted in the prior audit. Repeat Finding: 2021-064 Questioned Costs: $76,050 known Statistical Sample: No Context: During testing of 40 aid payments, we noted one payment, totaling $1,350, made to an applicant whose landlord was an immediate relative. The total sample tested was $87,526, and total assistance payments for the fiscal year were $17,456,087. The dollar error rate for the sample was 1.54% ($1,350/$87,526), which estimates the potential dollars at risk for fiscal year 2022 to be $268,824 (dollar rate multiplied by the population.) In the prior and current audit, we noted that the Agency identified likely fraudulent payments. As of January 9, 2023, the Agency had identified $155,360 and $822,188 of likely fraudulent payments in fiscal years ended June 30, 2021, and June 30, 2022, respectively. We reviewed five of these payments, totaling $74,700, in fiscal year 2022. For all five payments, we noted indicators of possible fraud, as information on the application provided was inconsistent with the information from other databases or systems. Examples of such indicators include the following: 1) the owner of the property per the County Assessors website not agreeing to the owner listed on the application; 2) generic and editable supporting documentation; and 3) tenants and landlords having out-of-state identification and telephone numbers. According to the Agency, these payments have been referred to the State Patrol for further investigation. Cause: The Agency had various procedures for ensuring that application information was accurate; however, verifying the property owner to County Assessor information was not required. Effect: There is an increased risk for fraudulent payments. Once fraudulent payments have been made, the likelihood of recouping them is low. Recommendation: We recommend the Agency improve its procedures for verifying the validity of applicants prior to payments. We further recommend the Agency continue to work with law enforcement to recoup improper payments. Management Response: The Military Department does not agree with this finding. The State has implemented a strong system of internal controls to determine program eligibility. These controls include detailed pre-payment and post-payment analytics to help identify applications at risk for fraud. As the ERA program progressed in Nebraska and nationally, program procedures continued to be enhanced to monitor for and prevent potentially fraudulent applications. During its life the program provided proactive fraud detection for over 56,000 tenant and landlord applications and prevented approximately $23M of funding from being paid out erroneously. Additionally, the State turns over any paid applications that have been subsequently determined at risk of being fraudulent to the State Patrol for further investigation and potential prosecution. APA Response: In addition to the one of 40 payments tested with errors, five payments we reviewed noted possible indications of fraud. Once fraudulent payments have been made, the likelihood of recouping them is low. 2 CFR ? 200.516 (January 1, 2022) requires reporting known or likely fraud affecting a Federal award.
Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? yes X no Significant deficiency(ies) identified that are not considered to be material weaknesses? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: Material weakness(es) identified? yes X no Significant deficiency(ies) identified that are not considered to be material weaknesses? yes X none reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with the 2 CFR 200.516(a)? X yes no Identification of major programs A s sCiFsDtaAn cNeu Lmisbteinr(gs )Number(s) Name of Federal Program or Cluster Various Student Financial Assistance Cluster Dollar threshold used to distinguish between type A and type B programs: $ 3,000,000 Auditee qualified as low-risk auditee? X yes no Section II - Financial Statement Findings No matters noted. Section III ? Federal Award Findings and Questioned Costs Finding 2022-001: Notification of Title IV disbursement not provided appropriately Federal Agency: Department of Education Program: Student Financial Assistance Cluster Assistance Listing #: Various Award #: Various Award Year: 2021-2022 Criteria: 34 CFR 668.165, Before an institution disburses Title IV, HEA program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each Title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. Questioned Costs: None. Condition: During the 2021-2022 award year, four out of twenty-five students tested in our sample of disbursements of Title IV funds were not provided notification prior to disbursement of funds as dictated by 34 CFR 668.165. Notification was provided subsequent to disbursement for three of these students; however, one student was not notified at all. Cause: The University?s internal controls over Title IV eligibility and disbursement include a manual review of each student?s account prior to disbursement. Upon completion of this review, the employee performing the review will manually flag the student?s account in the system which generates the required notification prior to disbursement. These four student accounts were not manually flagged for notification. Effect: The University did not provide timely notification to three students and did not provide notification at all for one student. Recommendation: We recommend the University reiterate to control owners the importance of manually flagging students? accounts when reviews are performed. Additionally, a review control to ensure notifications are provided prior to disbursement should be considered. Views of Responsible Officials/Management Response: See Management?s view and corrective action plan included at the end of this report.