Item

Initials & Date

Work Paper Reference

1. Review MUSC=s accounting policies and procedures associated with classifications/charges direct to grants/contracts.

2. Obtain a detailed schedule of grant/contract actual costs for the period being audited.

3. Select the three grants/contracts having the largest dollar value after excluding personal services costs. Review the remaining costs on these grants/contracts 100 percent.

4. Develop a universe for expense account 56xxx (sub-contracts/grants). Review the costs in this account 100%.

5. Develop universes of all other grants/contracts costs by major expense accounts.

6. Using statistical sample, select representative sample of items to perform detailed review.

7. Obtain supporting documentation for the grants/contracts expenses selected for audit.

Item

Initials & Date

Work Paper Reference

1. Determine that the expense was properly classified in accordance with MUSC=s accounting policies and procedures.

2. Determine that the expense is allowable, allocable, and reasonable in accordance with OMB Circular A-21 and the terms of the grant/contract.

3. Compare the Level 1 life-to-date grant/contract budget by line item to the incurred costs by line item to determine that the grant/contract is not in an overrun status.

4. Determine that the costs being reported/recorded under the grant/contract are consistent with the method in the proposal.

5. If these tests disclose instances of inadequate controls, incurrence of unallowable costs or inaccurate recording, make further tests sufficient to reach a definitive conclusion as to the nature and extent of deficiencies.

6. For sub-contracts/grants prepare a letter request to the sub-contractor/grantee requesting the following data:

Timecards/payroll records to support salary/wages charges

Rate agreement for any indirect rates being used

All invoices to support the other direct charges

7. Obtain from the Office of Research & Sponsored Programs (ORSP) or the Principal Investigator (PI) a copy of the sub-contract/grant agreement.

8. Review the agreement for special provisions and approval requirements.

9. Determine that any charges having special provisions or requiring approval have proper signatures authorizing the charges.

10. Prepare an exception report for sub-contract/grant charges. Discuss these exceptions with the appropriate PIs.

11. Reconcile the Level 1 Report to the General Ledger.

12. Summarize the results of audit.

Item

Initials & Date

Work Paper Reference

1. Discuss and resolve with the appropriate level of manager any exceptions taken on expenses charged to grants/contracts.

2. Items in Number 1 which cannot be resolved should be elevated to the next level of management (i.e., Director of Grants & Contracts) for resolution.

3. Prepare an internal report of all questioned items along with the corresponding notes and the corrective action to be taken.

4. Obtain management review and approval.

5. Distribute report to all department/schools after management approval.