Research Administration Office

University of California

No. 8-79

August 4, 1978

DHEW AUDIT AGENCY FOLLOW-UP AUDIT ON SUPPORTING DOCUMENTATION FOR PROPOSAL BUDGETS

Most of you were informed by copy of Director Gross' memorandum of August 2, 1978, to Campus Federal Audit Coordinators that the DHEW Audit Agency will be conducting a follow-up audit on the University's proposal pricing practices. (See Attachment 1). This is to further advise that the DHEW Audit Agency has completed its initial review of policies issued by Systemwide Administration for proposal documentation and has made plans for visits to Berkeley, San Francisco, Davis, Los Angeles, San Diego and Santa Barbara campuses to review current campus procedures and practices. The Audit Agency advises that it will provide advance notice prior to arrival on your campus.

We advised the DHEW Audit Agency that the University's current proposal documentation policy which is to be republished as part of the Contract and Grant Manual is embodied in the document entitled Guidelines for Proposal Budget Support.

As you may recall, those Guidelines were prepared by the Audit Agency as a result of their initial proposal audit findings during the latter part of 1975. The Guidelines were distributed for your review and comments via C& G Memo 19-76 on February 4, 1976. We, thereafter, received your favorable responses.

In preparation for the DHEW Audit Agency's visit to your campus it may be useful for you to review the following materials:

(1) DHEW Audit Agency's 1975 audit report No. 67003-09, "Review of Support for Cost Proposals Under Federal Agreements". (Refer to C& G Memo 19-76).

(2) Guidelines for Proposal Budget Support (Reproduced as Attachment 2 to this Memo).

(3) Your written campus policies and procedures on proposal preparation and documentation

Refer: W. C. Archie, 2-2593

Index: Audits, Proposals

Attachments


UNIVERSITY OF CALIFORNIA SYSTEMWIDE ADMINISTRATION

Office of the Associate Vice President

August 2, 1978

CAMPUS FEDERAL AUDIT COORDINATORS:

I have been advised that the DHEW Audit Agency is going to do a follow-up audit on the University's proposal pricing practices. They plan to visit five campuses (not identified) and the UCSA Contract and Grant Office.

cc:

Associate Vice President Jenkins

T. Feuerborn

Contract and Officers


GUIDELINES FOR PROPOSAL BUDGET SUPPORT

The following guidelines are intended to serve as a basis for supporting budgets under cost proposals submitted to Federal awarding agencies by the University of California. The kind of supporting documentation specified will be the type of material that the DHEW Audit Agency will look for during cost proposal audits performed at awarding agency request, The criteria specified is not intended to be binding on the University. The University may maintain other types of supporting documentation provided that it is written and shows clearly and in sufficient detail how the proposed cost element dollar amounts were arrived at.

Salaries and Wages

Supporting documentation should indicate:

Employee Fringe Benefits

Supporting documentation should indicate:

Consultants

Supporting documentation should indicate:

Equipment (Purchased)

Supporting documentation should indicate class of equipment item and

Equipment (Fabricated)

Supporting documentation should indicate:

Equipment (Rental)

Supporting documentation should indicate:

Travel

Supporting documentation should indicate:

Supplies and Expense

Supporting documentation should indicate:

Other Direct Costs

Indirect Costs

The appropriate rate and base to which the rate is to be applied should be indicated. The dollar figure for the indirect cost base should be specified.