Performance Audit of Incurred Costs – University of Florida

Submitting OIG:

National Science Foundation OIG

Date Issued:

Friday, January 15, 2021

Agency Reviewed / Investigated:

National Science Foundation

Submitting OIG-Specific Report Number:

21-1-004

External entity, if applicable:

University of Florida

Location(s):

Gainesville, FL

United States

Type of Report:

Audit

Questioned Costs:

$640,723

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
21-1-004UniversityofFlorida.pdf	2.11 MB

Recommendation Number	Recommendation Status	Significant Recommendation
Finding 1, Rec. 1	Open	Yes
Resolve the $412,363 in questioned subaward costs and direct UF to repay or otherwise remove the sustained questioned costs from its NSF awards.
Finding 1, Rec. 2	Open	Yes
Direct UF to strengthen the administrative and management internal controls and processes over transferring significant parts of NSF funded research to other organizations. Processes could include: a. Establishing procedures that require UF to verify that, for any subaward established to perform research under an NSF grant awarded to UF, it specifically obtained the NSF Grants Officer’s approval, either as part of the NSF grant budget or through a formal request to transfer the research or effort through NSF’s FastLane system, before issuing a subaward. b. Requiring periodic training for Principal Investigators and other personnel permitted to issue subaward agreements under NSF awards.
Finding 2, Rec. 1	Open	Yes
Resolve the $47,226 in questioned participant support, travel, and publication expenses for which UF has not agreed to reimburse NSF and direct UF to repay or otherwise remove the sustained questioned costs from its NSF awards.
Finding 2, Rec. 2	Open	Yes
Direct UF to provide documentation that it has repaid or otherwise credited the $66,590 of questioned participant support, travel, other direct, and indirect costs for which it has agreed to reimburse NSF.
Finding 2, Rec. 3	Open	Yes
Direct UF to establish clear guidance regarding the use of participant support cost funding. This guidance should address: a. What types of expenses can be covered by participant support cost funding. b. When to charge project codes dedicated to accumulating participant support costs. c. When and how to request approval to re-budget participant support cost funding, as well as how to document the approval. d. When it is permissible to use participant support costs to provide meals or refreshments during a conference, including how to segregate and account for unallowable participant support costs, such as costs associated with employee meals, alcohol, and entertainment. e. How to verify that UF has not applied fringe benefit rates and indirect cost rates to participant support cost expenses.
Finding 2, Rec. 4	Open	Yes
Direct UF to strengthen its administrative and management procedures and internal controls surrounding the purchase of airfare and the approval of travel expense reports. Updated procedures could include: a. Conducting annual training for those individuals responsible for reviewing and approving expense reports within each department. b. Establishing clear guidance regarding the allowability of airfare, lodging, and other travel expenses for accompanying individuals and individuals who did not attend grant-related conferences and whose travel therefore does not benefit the project(s) charged.
Finding 2, Rec. 5	Open	Yes
Direct UF to strengthen its administrative and management procedures and internal controls surrounding the processing of tuition waivers and relocation expenses to ensure that it only charges NSF for allowable fees and approved relocation allowances.
Finding 2, Rec. 6	Open	Yes
Direct UF to establish clear guidance regarding the allowability of publication expenses on sponsored projects, including the need to acknowledge NSF funding sources.
Finding 3, Rec. 1	Open	Yes
Resolve the $83,227 in questioned supplies, software, severance and publication costs for which UF has not agreed to reimburse NSF and direct UF to repay or otherwise remove the sustained questioned costs from its NSF awards.
Finding 3, Rec. 2	Open	Yes
Direct UF to provide documentation that it has repaid or otherwise credited the $29,600 in questioned lab supplies, materials, travel costs, and tuition fees for which it has agreed to reimburse NSF.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Finding 1, Rec. 1

Open

Yes

Resolve the $412,363 in questioned subaward costs and direct UF to repay or otherwise remove the sustained questioned costs from its NSF awards.

Finding 1, Rec. 2

Open

Yes

Direct UF to strengthen the administrative and management internal controls and processes over transferring significant parts of NSF funded research to other organizations. Processes could include: a. Establishing procedures that require UF to verify that, for any subaward established to perform research under an NSF grant awarded to UF, it specifically obtained the NSF Grants Officer’s approval, either as part of the NSF grant budget or through a formal request to transfer the research or effort through NSF’s FastLane system, before issuing a subaward. b. Requiring periodic training for Principal Investigators and other personnel permitted to issue subaward agreements under NSF awards.