Internal Control Objectives For Sponsored Program Awards

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If the net effect of errors is that the University obtains reimbursement in excess of valid expenditures, it needs to pay interest expense to the federal sponsors. If the net effect of errors is that the University incurs expenditures in excess of reimbursements, it foregoes the use of funds otherwise available and perhaps even incurs unnecessary interest expense to borrow funds on its line of credit...
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If the net effect of errors is that the University incurs expenditures in excess of reimbursements, it foregoes the use of funds otherwise available and perhaps even incurs unnecessary interest expense to borrow funds on its line of credit. If the project provides for reimbursement through submission of an invoice to the sponsor upon achievement of a milestone, it is important to have controls in place to monitor milestone achievement, the amount that can be billed, and to create the bill timely...
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