GAO: Agencies Involved in the Indirect Cost Rate-Setting Process Need to Improve Controls

A September 7 Government Accountability Office (GAO) report, NIH Biomedical Research: Agencies Involved in the Indirect Cost Rate-Setting Process Need to Improve Controls (GAO-16-616), includes 12 recommendations for the Department of Health and Human Service’s Cost Allocation Services, the National Institutes of Health (NIH) Division of Financial Advisory Services, and the Department of Defense’s Office of Naval Research. According to GAO, the recommendations are designed to improve controls over the agency’s indirect cost rate process. GAO was asked to “review the internal controls for overseeing the validity of indirect cost rates for NIH’s research organization.” The study was initiated by Chairman of the House Energy and Commerce Committee Fred Upton (R-WI) and Chair of the Subcommittee on Oversight and Investigations Tim Murphy (R-PA).

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