Audit Finding

        Recently, auditors from the U. S. Department of Health and Human Services, our cognizant audit agency, completed an audit of a contract administered by the Office of Naval Research.  Their major finding involved a salary and fringe benefits and associated F&A cost transfer that was completed after the normal time for completing a salary transfer and without appropriate documentation to explain or justify the propriety of the transfer.  They noted that just prior to the transfer the exact amount of the transfer was unexpended on the contract.  In discussing their finding with us, they felt certain that the department made the charge solely to use up the funds available under the award and not because of any justifiable award purpose.  As a result the department was charged with a  disallowance of over $30,000.  

        The lesson here is to do a cost transfer in a timely manner and with appropriate documentation to justify the propriety of the transfer. 

Ronald S. Thompson, Assistant Controller             Phone 732-445-0755
Rutgers, The State University of New Jersey          Fax     732-445-1180
Division of Grant and Contract Accounting
65 Davidson Road                 Web site http://www.rci.rutgers.edu/~ilc
Piscataway, NJ 08854-5603     E-mail Thompson@Grantadm.Rutgers.Edu