Audit of Cost Transfers Funded Under NIH Grants at the University of Chicago

The objectives of the audit were to determine whether the University (i) developed and implemented adequate written procedures and controls relating to cost transfers and (ii) justified and supported cost transfers in accordance with Federal regulations and the institution's policies and procedures. Although the University developed and implemented adequate written policies and procedures and controls relating to cost transfers and generally justified and supported cost transfers to NIH grants, staff did not always follow those procedures and cost transfers were not always documented and authorized as required. We found that one transfer lacked required documentation to explain how the error occurred and four late transfers were made without completing or properly authorizing the required form for University oversight and approval. Sufficient justification and documentation were ultimately available to support the allowability and allocability of the cost transfers to NIH grants. We recommended that the University reemphasize cost transfer policies and procedures with the Comptroller's and departmental staff. The University agreed with our recommendation.