Finance Officials Criticize Auditing Regulation

University officials criticized the federal regulation on research-cost reporting Wednesday, saying the rule imposes unreasonable demands on researchers supported by government grants.

Circular A-21, which requires researchers to submit reports detailing their activities before being reimbursed, is "almost impossible to comply with because of the way faculty members divide their time," Robert H. Scott, director of financial systems, said Wednesday.

No Way

Scott said professors find it nearly impossible to distinguish quantitatively between time spent on research, teaching and administration.

The rule, enacted in July by the Office of Management and Budget "reduces the share of what the government pays," Richard G. Leahy, associate dean for resources, said Tuesday. "If we audited last year's costs by the new rules the government would owe us less money," Leahy added.

University financial officials have been working with federal agencies and other research-oriented universities since March to make the regulation easier to comply with, Scott said.

"We are trying to find an imaginative, simple, convenient way to audit which minimizes disruption of research and maximizes managing funds well," Scott said.

Last year the University began internal auditing to lessen the effect of reduced reimbursement, Leahy said. He said the self-auditing reveals certain costs that the University hasn't been reporting and should compensate for the loss.

In addition, the officials have been meeting with members of the American Association of Universities and the Department of Health and Human Services to conduct a study using a sampling of researchers to get data on how they divide their time, Scott said. The results may be used to eliminate the need for individual reports, Scott added.