Annual IT Services Review

The use of technology in business activities and sponsored award research has steadily increased over the years and has become instrumental in both day-to-day administrative functions as well as meeting research project aims. Many organizations have begun to include general IT and telecommunication costs into their F&A rate calculations given their widespread use and per federal guidelines (see Uniform Guidance).

At the University of Chicago, University Research Administration (URA) and Cost Studies in Financial Services collaborate to make the F&A rate determinations. To make a determination on the University of Chicago’s use of IT Services and incorporation into the F&A rate, a review of IT service charges was conducted. During FY20, the URA Research Compliance team reviewed 189 federally funded sponsored award accounts for a 6-month period. The transactions reviewed totaled $140,881. The results demonstrated that the majority of IT Service charges were correctly applied to the sponsored award account (76% accuracy). The costs charged in error included charges not moved to the next budget period (24% of incorrect charges) and charges removed from the sponsored award account entirely (59% of incorrect charges). While the accuracy rate supports the continued need for direct charging of these services, a 24% error rate is concerning.

IT Services in collaboration with University Research Administration.

Each exec level will receive a report of all IT Service transactions on their federal sponsored award accounts for the previous fiscal year.

The review will be combined with the University’s annual Payroll Verification Process. Anticipated start in July 2022. 

IT Services will provide reports to URA Quality Management that are separated by exec level. The URA Quality Management team will place reports in exec level folders being utilized for the annual PVR process that year.

The URA Research Compliance team will act as the main point of contact for the IT Services Annual Review. The QM team will provide information about IT Services charges, best practices, and the annual review during Hot Topic’s sessions, On Demand trainings, and through annual refreshers. The URA 207 Questionable Transactions report has been updated to include IT Services. 

IT Services

• Provide individual exec level reports of IT Services charges on all ledger 5 accounts for the previous fiscal year.
• Assist with any billing discrepancies, account removal, or updates to billing account on recurring IT Services. 

URA Research Compliance

• Act as main point of contact for the IT Services Annual Review process.
• Distribute reports to Divisions via Box. 
• Provide training to Divisions, Departments, and key contacts at a minimum of annually.

Division/Unit Contacts

• Review departmental internal controls and documentation – address any identified gaps.
• Encourage Dean/Chair to communicate the importance of this activity with their faculty.

Departmental Grant Admin

• Meet with PI’s to review and validate IT Service charge activity.
• If necessary, submit allowable corrections and contact IT Services for billing or account updates.