Federal audit issues

1. Timeliness and importance of effort verification reports (EVRs).

Every employee paid from a sponsored project, cost share on a sponsored project, work study or federal appropriation must certify/verify how they spent their effort as described in OMB Circular A-21 and in sponsored agreements. EVRs should be completed, signed and dated within 30 days of receipt by the individual or a supervisor who has firsthand knowledge of that person’s effort. The percentage of the individual’s time should be manually written in the Effort Allocation Estimate column of the report.

EVRs will be generated for MU Extension employees with no project specific funding but with general Smith Lever federal funds (designated with program E8000). These EVRs will not be signed by the employee or supervisor but will be approved by attaching documentation on the administrative decisions on splitting our federal funds.

2. Timeliness of expenses paid from grants being charged appropriately

Expenses should be charged to the correct account to the best of your knowledge at the time the expenses are incurred. Effective May 15th , policy dictates that salary, benefits and operating expenses can only be moved within 60 days of the expense being posted by the division. Documentation to support transfer of expenses should be maintained. PCEs do allow attachment of e-mail approval. Pre-award accounts should be requested as appropriate.

See System Business Policy 213 policy for procedures to request transfers after the 60 days

If EVRs are affected, a new EVR will need to be processed.

3. Written authorization of expenditures by principle investigator

All purchases must have the principle investigator’s written approval. Units can establish procedures to document compliance with this requirement. At a minimum e-mail documentation should be maintained to indicate PI’s acknowledgement of expenditures.