Performance Audit of Incurred Costs – University of North Carolina, Charlotte

Submitting OIG:

National Science Foundation OIG

Date Issued:

Friday, February 3, 2023

Agency Reviewed / Investigated:

National Science Foundation

Submitting OIG-Specific Report Number:

23-1-004

External entity, if applicable:

University of North Carolina, Charlotte

Location(s):

Charlotte, NC

United States

Type of Report:

Audit

Questioned Costs:

$6,048

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
Performance-Audit-Incurred-Costs-–-University-North-Carolina-Charlotte.pdf	1.26 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1.1	Open	Yes
Direct UNCC to provide documentation supporting that it has repaid or otherwise credited the $3,322 in questioned publication expenses for which it has agreed to reimburse NSF.
1.2	Open	Yes
Direct UNCC to strengthen its administrative and management controls and processes for supporting the allocation of publication expenses to sponsored projects. Updated processes could include: • Requiring Principal Investigators or other designated staff to both document and justify the allocation methodologies used when charging publication expenses to sponsored projects. • Implementing a standard documentation and retention process to support the allocation of publication expenses that benefit multiple awards.
1.3	Open	Yes
Direct UNCC to provide training on how to assess and document the methodology used to allocate publication expenses across each sponsored award acknowledged in the publication.
2.1	Open	Yes
Direct UNCC to provide documentation supporting that it has repaid or otherwise credited the $2,726 in questioned gift card and alcohol expenses for which it has agreed to reimburse NSF.
2.2	Open	Yes
Direct UNCC to strengthen its policies and procedures for tracking incentive gift cards used to benefit NSF awards, including adding controls requiring personnel to remove incentive gift card expenses from NSF awards if gift cards go unused.
2.3	Open	Yes
Direct UNCC to strengthen its administrative and management procedures for ensuring it does not charge alcohol expenses to NSF awards. Updated processes should require UNCC to verify that invoices for hosted events do not include alcohol charges before paying the invoices.
2.4	Open	Yes
Direct UNCC to update its policies, procedures, and internal controls for establishing an Institutional Base Salary for each employee, including updating its processes to require UNCC to apply all salary charges in accordance with the Institutional Base Salary rate.
2.5	Open	Yes
Direct UNCC to reassess the salary charged for each employee whose pay was based on a fluctuating salary rate rather than on an Institutional Base Salary and coordinate with NSF’s Resolution and Advanced Monitoring Branch to determine the allowable salary expenses for each employee.
3.1	Open	Yes
Direct UNCC to strengthen its administrative and management processes and procedures regarding specialized service facility billings, to ensure compliance with federal requirements. Updated processes could include: • Performing periodic reviews of specialized service expenses charged to sponsored awards to ensure that billing rates are accurate. • Requiring individuals who are independent from the rate-setting process to perform periodic quality control reviews of all specialized service facility billing rates, to ensure that the rates are free from errors.
4.1	Open	Yes
Direct UNCC to strengthen its administrative and management controls to ensure that travelers obtain appropriate authorization for sponsored travel prior to incurring expenses.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

1.1

Open

Yes

Direct UNCC to provide documentation supporting that it has repaid or otherwise credited the $3,322 in questioned publication expenses for which it has agreed to reimburse NSF.

1.2

Open

Yes

Direct UNCC to strengthen its administrative and management controls and processes for supporting the allocation of publication expenses to sponsored projects. Updated processes could include: • Requiring Principal Investigators or other designated staff to both document and justify the allocation methodologies used when charging publication expenses to sponsored projects. • Implementing a standard documentation and retention process to support the allocation of publication expenses that benefit multiple awards.