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The University of South Florida Did Not Always Claim Costs in Accordance With Federal Regulations

The University of South Florida (the University) did not always claim selected costs charged directly to HHS awards in accordance with Federal regulations and National Institutes of Health guidelines. In our sample of 112 salary transactions, 78 were allowable but 34 were not, and in our sample of 110 nonsalary transactions, 70 were allowable but 40 were not. On the basis of our sample results, we estimated that, of approximately $24.8 million in transactions, the University charged at least $6.4 million in unallowable transactions and related facilities and administrative costs to HHS awards during fiscal years 2010 and 2011.

These unallowable transactions occurred because the University did not provide adequate oversight to ensure consistent compliance with Federal regulations.

We recommended that the University (1) refund $6.4 million to the Federal Government and (2) enhance oversight of charges to Federal awards to ensure consistent compliance with Federal regulations. University officials disagreed with our overall findings.

Filed under: National Institutes of Health