Department of Health and Human Services

Office of Inspector General -- AUDIT

"University of Massachusetts Medical School Review of NIH Grant No. 5 R01 GM30626-22," (A-01-04-01505)

August 23, 2005


Complete Text of Report is available in PDF format (838 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

Our objective was to determine whether costs that the University of Massachusetts Medical School (the University) claimed for grant no. 5 R01 GM30626-22 from the National Institutes of Health (NIH) were allowable under the terms of the grant and applicable Federal regulations.  We identified $281,993 in costs that did not comply with OMB Circulars A-21 and A-110.  Of this total, $193,682 was in unsupported nonlabor costs and related indirect costs, and $88,311 was in overstated labor and related fringe and indirect costs.  We recommended that the University:  (1) ensure that accounting records are and retained; (2) comply with requirements to provide a timely and detailed explanation and related documentation on transfers; (3) improve its payroll distribution system; (4) ensure that the financial status reports that it submits are accurate and timely and correct its final financial report; (5) improve its payroll distribution system; (6) work with NIH to provide a reasonable adjustment for all improperly recorded grant application activity; (7) identify and notify NIH of unobligated balances exceeding 25 percent of the total award for the prior year; and, (8) refund $281,993 to NIH in overstated and/or unsupported costs.  The University generally disagreed with our recommendations.