Review of Subaward Costs Claimed by Roger Williams Hospital on NIH Grant Number 5 P01 HL56920-05 From February 1, 2001, Through August 31, 2002

EXECUTIVE SUMMARY:

Our objective was to determine whether subaward costs claimed by Roger Williams Hospital (the Hospital) under the University of Massachusetts Medical School (UMMS) prime grant no.1 PO1 HL56920-05 from the National Institutes of Health (NIH) were allowable under the terms of the subaward and applicable Federal regulations.  We identified $55,746 in costs that did not comply with Federal regulations and subaward terms. Of this total, $53,655 was in unallowable cost transfers and related fringe and indirect costs and $2,091 was in unsupported animal care charges and related indirect costs.  We recommended that the Hospital (i) comply with Federal requirements for ensuring that cost transfers are adequately explained and documented and (ii) revise its procedures to ensure that animal care charges can be identified to a specific project or account.  Because the Hospital received its funds through a subaward from UMMS rather than directly from NIH, we will recommend under separate cover that UMMS reimburse NIH for unallowable subaward costs totaling $55,746.  The Hospital has initiated actions to comply with the report's recommendations.

---