Performance Audit of Incurred Costs – Incorporated Research Institutions for Seismology

Submitting OIG:

National Science Foundation OIG

Date Issued:

Tuesday, February 7, 2023

Agency Reviewed / Investigated:

National Science Foundation

Submitting OIG-Specific Report Number:

23-1-005

External entity, if applicable:

Incorporated Research Institutions for Seismology

Location(s):

Washington, DC

United States

Type of Report:

Audit

Questioned Costs:

$470

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
23-1-005-Incorporated-Research-Institutions-Seismology-publicRedacted.pdf	2.1 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1.1	Open	Yes
Direct IRIS to provide documentation supporting that it has repaid or otherwise credited the $470 in questioned alcohol-related expenses for which it has agreed to reimburse NSF.
1.2	Open	Yes
Direct IRIS to update its procedures for reviewing conference costs to verify that it does not charge NSF awards for alcohol-related expenses, including bartender services. Updated processes should require IRIS to review invoices for hosted events and charge any expenses related to the serving of alcohol to an account that IRIS does not charge to sponsored projects, either directly charge NSF awards for alcohol-related expenses, including bartender services. Updated processes should require IRIS to review invoices for hosted events and charge any expenses related to the serving of alcohol to an account that IRIS does not charge to sponsored projects, either directly
2.1	Open	Yes
Direct IRIS to meet with the National Science Foundation Cost Analysis and Pre-Award Branch, its cognizant federal agency, to either (a) establish policies and procedures to charge fringe benefit expenses as direct costs and/or apply fringe benefits based on approved provisional rates, as outlined within its Negotiated Indirect Cost Rate Agreement, or (b) update its Negotiated Indirect Cost Rate Agreement to reflect its actual treatment of fringe benefits.
3.1	Open	Yes
Direct IRIS to meet with the National Science Foundation Cost Analysis and Pre-Award Branch, its cognizant federal agency, to either (a) establish policies and procedures to apply provisional indirect cost rates, as outlined within its Negotiated Indirect Cost Rate Agreement, or (b) update its Negotiated Indirect Cost Rate Agreement to reflect its actual treatment of indirect costs.
4.1	Open	Yes
Direct IRIS to establish additional guidance regarding how to review invoices that include participant support costs. This guidance should address how to segregate and account for costs that IRIS is not allowed to cover using participant support cost funding, such as costs incurred for IRIS employees and expenses associated with other direct costs that IRIS did not specifically identify in the award budget.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

1.1

Open

Yes

Direct IRIS to provide documentation supporting that it has repaid or otherwise credited the $470 in questioned alcohol-related expenses for which it has agreed to reimburse NSF.

1.2

Open

Yes

Direct IRIS to update its procedures for reviewing conference costs to verify that it does not charge NSF awards for alcohol-related expenses, including bartender services. Updated processes should require IRIS to review invoices for hosted events and charge any expenses related to the serving of alcohol to an account that IRIS does not charge to sponsored projects, either directly charge NSF awards for alcohol-related expenses, including bartender services. Updated processes should require IRIS to review invoices for hosted events and charge any expenses related to the serving of alcohol to an account that IRIS does not charge to sponsored projects, either directly