Finding Text
2024-004 Controls over Non-Payroll (Material Weakness in Internal Controls over Compliance)
Title: Research and Development Cluster
Funding Agency, Federal Award, Agreement Number, Award Year, Assistance Listing Number:
National Science Foundation, 2122108, 2024,47.049
National Science Foundation, 1742599 & 1953487, 2024,47.076
United States Department of Education, P031C160248, 2024, 84.031C
United States Department of Health and Human Services, 1R16GM146669-01, 2024, 93.859
Title: Southwest Forest Health and Wildfire Prevention
Funding Agency: United States Department of Agriculture
Federal Award Agreement Number:21-DG-11030000-020, 22-DG-11030000-013
Award Year:2024
Assistance Listing Number:10.694
Condition: During non-payroll testing, CRI noted the following: • Out of 25 items tested in the R&D Cluster, 17 were not approved by the Grant Director or the Office of Research and Sponsored Projects.
• Out of 25 items tested in the Southwest Forest Health and Wildfire Prevention grant, 12 did not have an approved purchase requisition or pre-approval report.
Questioned Costs: None noted.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Per Title 2 US Code of Federal Regulations Part 200.403g, costs must be adequately documented to be allowable under Federal awards.
Cause: The University is not following procedures to ensure the appropriate approvals are being conducted on all purchases or retaining the supporting documentation to ensure purchase is allowable.
Effect: The University may unintentionally charge expenses to the program that do not qualify and in turn lead to questioned costs and/or repayment of funds to the Grantor agency.