Direct UH to strengthen its administrative and management procedures for applying indirect costs to Federal awards. Processes could include: a. Implementing an annual review process for costs charged to awards that include funding for participant support and tuition remission to ensure that UH is appropriately segregating participant support costs and tuition remission costs in accounts that UH has excluded from its Modified Total Direct Cost base. b. Requiring that personnel manually review material and supply purchases to evaluate whether UH should account for the items as equipment. Specifically, UH should consider whether the items purchased have a useful life that exceeds 1 year and a value that exceeds $5,000, or if the items are necessary for the use of an asset that meets those criteria.