Finding 1606 (2023-002)

Criteria Section §200.405 Allocable costs of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards indicates that a cost is allocable to a particular federal award if the goods or services involved are chargeable or assignable to that federal award or cost objective in accordance with relative benefits received. This standard is met, among other things, if the cost charged is incurred specifically for the federal award. Condition found During our audit procedures on the allowable activities and cost principles compliance requirements, we noted that on one (1) instance, a vendor invoiced $42,350, and the institution claimed $42,675 to the program for the same transaction. Cause The $325 difference is an invoice that was duplicated and accidentally invoiced to HEERF. Effect The amount charged to the federal program exceeded the actual amount paid. Program expenditures were overstated, and the University over-charged $325 to the federal program. Such condition may cause the federal grantor to issue warnings and/or impose penalties to the University. Questioned cost Known questioned cost amounts to $325. Context As part of our compliance tests with allowable costs and cost principles, we selected seven (7) expense transactions of the Higher Education Emergency Relief Fund - Institutional Portion program amounting to $1,991,533. Our test disclosed one (1) instance where the amount charged to the federal program exceeded the actual amount paid. The transaction was related to mental health services provided to students. Identification of a repeat finding This is not a repeat finding. Recommendation The University´s program staff and management should ensure that the amounts charged to the federal award and disbursed to the employees are accurate and under the correct contract rates. Monthly reconciliation of all expenses, including of salaries charged to program versus actual hours incurred must be timely performed.