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The University of North Carolina at Chapel Hill Did Not Always Claim Selected Costs Charged Directly to Department of Health and Human Services Awards in Accordance with Federal Requirements

From July 1, 2009, through June 30, 2011, the University claimed reimbursement for approximately $956.3 million in costs incurred on 1,447 grants, contracts, and other agreements (awards) from the Department of Health and Human Services (HHS). Of the $8.5 million in transactions that we reviewed, transactions totaling $8.2 million were allowable, but $336,000 in transactions were not allowable. In addition, the University claimed unallowable facilities and administrative costs totaling $17,000 that were related to the unallowable transactions.

The University claimed unallowable costs under HHS awards because University staff did not comply with University policies and procedures for adequately documenting cost transfers, adequately reviewing costs charged to awards, and assuring that costs are treated consistently. As a result, the University did not always administer its HHS awards cost effectively or in compliance with Federal requirements.

Filed under: National Institutes of Health