Review of Administrative and Clerical Costs at Brandeis University for Fiscal Years 2004 and 2005

EXECUTIVE SUMMARY:

The objective of our audit was to determine whether Brandeis University (the University) claimed clerical and administrative costs and other direct costs under the terms and conditions of Department of Health & Human Services grant and contract awards and applicable Federal regulations during our audit period of July 1, 2003, through June 31, 2005. The University claimed administrative salaries and wages in accordance with Federal and University requirements. However, the University misclassified a total of $31,303 to National Institutes of Health (NIH) grants for books, subscriptions, and public relation costs that should have been included in its facilities and administrative (F&A) costs. We recommended that the University update its procedures to include books, subscriptions, and other supplies as costs claimed under F&A costs unless adequately justified, budgeted, and approved by NIH as a direct grant cost and work with NIH to resolve the $31,303 in misclassified costs. The University generally agreed with our recommendations.