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Report File
Date Issued
Submitting OIG
Smithsonian Institution OIG
Agencies Reviewed/Investigated
Smithsonian Institution
Report Number
OIG-A-25-06
Report Description

The Smithsonian Institution (Smithsonian) relies on funding from external sponsors such as governments, foundations, and corporations to support projects that further its mission to increase and diffuse knowledge.

The Office of Sponsored Projects (OSP) provides centralized support, guidance, and training for Smithsonian units receiving sponsored project funding. Together they manage sponsored projects in compliance with Smithsonian policies and procedures and sponsors’ terms and conditions.

OSP oversaw $189 million in sponsored project funding provided during fiscal years 2022 and 2023. 

This audit determined the extent to which OSP and recipient units complied with: (1) Smithsonian policies and procedures and (2) sponsors’ terms and conditions concerning administering and overseeing sponsored projects.

OIG reviewed a sample of 25 sponsored projects totaling $33.8 million—approximately 18 percent of sponsored project funding provided through OSP in fiscal years 2022 and 2023. OIG also analyzed OSP’s sponsored project universe for balances and transactions determined to be of higher risk of noncompliance. 

During the two fiscal years under audit, OSP managed a 65 percent increase in sponsored project funding while maintaining high-quality service reported by Smithsonian units. However, OIG identified opportunities to improve the administration and oversight of projects throughout their lifecycle. 

Report Type
Audit
Agency Wide
Yes
Number of Recommendations
13
Questioned Costs
$456,654
Funds for Better Use
$4,694,941
Report updated under NDAA 5274
No

Open Recommendations

This report has 13 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
OIG-A-25-06-01 Yes $0 $0

Update the Sponsored Projects Handbook in these ways: a. Implement controls related to residual funds on fixed price projects to address excessive balances; and b. Ensure that the financial review, record, and reconciliation procedures provide sufficient guidance for units to meet minimum standards of documentation.

OIG-A-25-06-02 Yes $0 $0

Implement mandatory training and track attendance for unit PIs, unit Fund Managers, and others identified by OSP as involved in the sponsored project program that: a. Covers key responsibilities including but not limited to project identification and initiation, financial management (payroll and non-payroll), reporting, and closeout; and b. Provides examples of how to document financial reviews, unit expenditure records, and quarterly reconciliations in accordance with the updated Sponsored Projects Handbook.

OIG-A-25-06-03 Yes $0 $0

Incorporate key internal processes in written policies and procedures concerning OSP: (1) reviewing project activities and balances; (2) monitoring sponsored projects; and (3) using checklists.

OIG-A-25-06-04 Yes $232,232 $0

Determine and document the allowability of the questioned $157,850 for payroll costs and $74,382 for non-payroll costs charged to Project 505247 and resolve any costs determined to be disallowed with the sponsor.

OIG-A-25-05 Yes $81,924 $0

Determine and document the allowability of the questioned $81,924 for payroll costs charged to Project 505223 and resolve any costs determined to be disallowed with the sponsor.

OIG-A-25-06-06 Yes $0 $0

Develop and implement written unit timekeeping procedures in compliance with Smithsonian policies.

OIG-A-25-06-07 Yes $24,260 $0

Determine and document the allowability of the questioned $24,260 for non-payroll costs charged to Project 786172 and resolve any costs determined to be disallowed with the sponsor.

OIG-A-25-06-08 Yes $118,238 $0

Determine and document the allowability of the questioned $118,238 from catering costs charged to government-funded projects and resolve any costs determined to be disallowed with the sponsor(s).

OIG-A-25-06-09 Yes $0 $0

Develop and implement procedures to monitor the following: a. The timeliness and compliance of units' project expenditure reviews, records, and reconciliations with the updated Sponsored Projects Handbook; and b. The timely submission of reports to sponsors.

OIG-A-25-06-10 Yes $0 $0

Develop and implement a process to resolve balances prior to closeout, and standardize the timeframe to complete all components of project closeout.

OIG-A-25-06-11 Yes $0 $3,833,459

Resolve the $3,833,459 of available balances identified in this report that could potentially be put to better use.

OIG-A-25-06-12 Yes $0 $702,362

Resolve the $702,362 of receivables balances identified in this report that could potentially be put to better use.

OIG-A-25-06-13 Yes $0 $159,120

Resolve the $159,120 of encumbered and pre-encumbered balances identified in this report that could potentially be put to better use.

Smithsonian Institution OIG

Nicole L. Angarella

United States

Phone Number