Post Award Issues and Updates January 10, 2008 Bobbi McCracken Assistant Vice Chancellor for Financial Services and B

1. Post Award Issues and UpdatesJanuary 10, 2008Bobbi McCrackenAssistant Vice Chancellor for Financial Servicesand Bruce MorganAssistant Vice Chancellor for Research

2. Issues SAS 112 OIG � areas of focus UCR � areas of concern and what is being done to address them Update Subrecipient monitoring guidelines

3. SAS 112 Statement of Auditing Standards 112 Establishes standards for communicating internal control issues relating to: Integrity of financial reporting Compliance with applicable laws and regulations Control issues must be disclosed to the Regents and UCR�s sponsors

4. SAS 112 Establishes standards for classifying control issues Control deficiencies Significant deficiencies Material weaknesses SAS 112 has been incorporated in the Government Auditing Standards Applicable to UC�s FY 08 A-133 audit

5. SAS 112 What does SAS 112 mean for UCR? Larger audit samples Increased scrutiny Require more audit evidence and documentation Increased likelihood of control issues being reported

6. SAS 112 Potential impact on UCR Adversely effect sponsored program funding Negative publicity and diminishing reputation Loss of public support Increase in external audits Audit disallowances Fines and penalties

7. OIG � Areas of Focus NSF OIG Thematic focus Taxpayer investment Financial & programmatic accountability Salaries and wages claimed by universities Effort reporting at major universities Audit of select awards to universities Focusing on grantee systems to safeguard and account for NSF funds Desk reviews of grantee A-133 audit reports

8. OIG � Areas of Focus HHS � OIG Grantee management of conflicts of interest Review the nature of reported interests in FY 06 and how institutions managed the conflicts Review how NIH managed grantee compliance University administrative & clerical salaries Review will encompass grants, cooperative agreements and contracts at selected universities Colleges� and Universities� compliance with cost principles Reviews will be conducted at selected institutions

9. UCR � Areas of Concern Effort reporting Incomplete / missing, late Cost transfers High volume, timeliness & documentation Subrecipient monitoring Cost sharing Compliance with cost principles & reporting Award close-out Delinquent financial and technical reports

10. Addressing the Concerns Training Expanding campus sponsored programs training program Roles and responsibilities document Effective information & training tool Mitigating factor for fines & penalties Electronic tools Implement new on-line effort reporting Including cost sharing component Ledger reconciliation and review system

11. UCR subrecipient monitoring weakness appeared in the UC FY 05 A-133 report Hired Subrecipient Monitoring Coordinator Strengthened OR�s internal procedures to ensure appropriate institutional-level monitoring Developed monitoring guidelines for PIs and units � near final draft Subrecipient Monitoring Guidelines

12. Questions?