The U.S. National Science Foundation performs desk reviews as a component of its advanced monitoring of awardee organizations.
NSF selects and conducts desk reviews in accordance with the results of an annual risk assessment of its grants portfolio.
The goals of desk reviews and other NSF advanced monitoring activities are to:
- Promote stewardship of federal funds.
- Identify potential areas of awardee noncompliance.
- Provide business assistance to organizations to improve their award administration capacity.
Desk reviews are performed by a contractor with oversight by NSF personnel.
On this page
What is a desk review?
Desk reviews are an overarching appraisal of an organization's award administration capacity.
Desk reviews include three core review areas:
1. General management survey: Assesses the extent to which an organization has a sound organizational structure that will:
- Protect assets.
- Ensure against the incurrence of improper liabilities.
- Ensure the accuracy and reliability of financial and operating information.
2. Accounting and financial system review: Assesses the sufficiency of an organization's financial management policies, procedures and controls to:
- Accurately and completely disclose and document the financial results of federal awards.
- Provide effective control and accountability of funds, property and other assets.
- Determine the reasonableness, allocability and allowability of costs.
3. Award Cash Management Service (ACM$) drawdown process review: Gathers supporting accounting records and a reconciliation between award-related cumulative disbursements reported to NSF and corresponding information in an organization's accounting records.
NSF uses this information to assess how well an organization maintains a controlled environment for administering awards in compliance with federal regulations and NSF agreement provisions.
NSF's desk review also ensures that NSF's awardee organizations are using sound business and administrative practices to achieve the purpose of their grant-funded projects.
When is a desk review performed?
In some cases, desk reviews are scheduled in advance of a site visit.
Desk reviews may also be performed on awardees whose prior monitoring activities include a desk review, site visit, or both. In these cases, NSF will document changes in policies and procedures since the last monitoring activity, and any related concerns identified during the review will be noted in the summary report.
Who receives desk reviews?
NSF prioritizes awardee organizations to participate in advanced monitoring (including desk reviews and site visits) based on:
- The results of its annual award portfolio risk assessment.
- Monitoring requests from NSF divisions.
- Professional judgment.
NSF's annual risk assessment assigns each awardee organization to a risk category. The assessment includes award factors, institutional factors, prior monitoring activities and results, and award administration and program staff feedback.
The desk review process
The desk review process begins when NSF sends a letter notifying the awardee organization that they have been selected to participate in a desk review.
The organization will then receive a request for documentation from an external contractor who will perform the review. The contractor will correspond directly with the awardee organization to collect the required information and schedule one or more discussion calls.
Review documentation and information frequently requested during the desk review process:
- General management:
- Most recent Single (formerly A-133) Audit Report or recently audited financial statements.
- Current negotiated indirect cost rate agreement (NICRA) or facilities and administrative (F&A) agreement.
- List of current board of directors members and bylaws.
- Overall organizational chart and other applicable organizational charts.
- Written policies and procedures regarding delegation of authority to legally commit the organization (i.e., approval for proposals, acceptance of awards and amendments).
- Written policies and procedures that describe the sponsored projects budget revision/amendment process.
- Completed sample budget revision/reallocation and written policies and procedures regarding sponsored projects budget and expenditure monitoring.
- Written policies and procedures that describe cost transfers/expenditure reclassifications between projects or awards.
- Written policies and procedures related to expenditure approval and competitive bidding.
- Accounting system:
- Accounting manual and date of last update. In lieu of an accounting manual, a set of common accounting policies (e.g., year-end closing, bank reconciliations, disbursements/payments).
- General ledger chart of accounts/expense code list, date of last update and explanation of account hierarchy to understand how NSF funding is segregated in the accounting system.
- Written standards and procedures for determining the reasonableness, allocability and allowability of costs charged to federally funded projects.
- Written policies and procedures regarding the accounting treatment of unallowable direct and indirect costs.
- Written policies and procedures that describe standards for supporting documentation for transactions recorded in your organization’s accounting system.
- Written policies and procedures on record retention standards for award agreements, financial reports, supporting documentation and other award-related records and information regarding the system of personnel compensation used (e.g., hours worked, percent of time) for each category of employee (e.g., exempt and nonexempt/hourly staff).
- ACM$ reconciliation:
- Recently prepared project cost ledger for the selected NSF award(s), printed directly from the accounting system within 10 days of the request, from the inception of the award to a date stipulated by the analyst assigned to the desk review.
- Written policies and procedures regarding ACM$ preparation, approval and submission.
After completion of the discussion call(s), the contractor may request additional documentation. In most cases, the contractor will send a letter notifying the awardee organization about any issues identified during the review, and the awardee will be allowed a short period of time to respond and/or submit additional documentation.
Last, the contractor compiles the draft desk review report for NSF review and approval.
Throughout the desk review process, the contractor communicates the status of each desk review to NSF, including any issues that may arise during the review.
After the desk review has been completed and approved by NSF, the awardee organization will receive a letter providing feedback by describing any issues identified during the review.
Awardee organizations may be required to prepare a corrective action plan to remedy any deficiencies. NSF tracks the status of each organization's implementation of a mutually agreed upon remedy until the issues are resolved. Minor concerns generally do not require a formal corrective action plan, but awardees are expected to address the issues promptly. If they are not addressed promptly, a formal corrective action plan may later be required.
Who participates in the desk review?
Typically, two to four representatives from the awardee organization (e.g., two sponsored programs office staff and one accounting staff) participate in the desk review process.
Since the review process focuses on award administration and not award performance, the principal investigator of the award reviewed is not usually involved in the process.
How long does a desk review take?
Desk reviews are typically completed within 90 to 120 days of awardee notification.
Awardees are expected to reply promptly to requests for supporting documents, discussion call scheduling, or related questions. Failure to respond in a timely manner may result in NSF documenting formal concerns or taking other administrative actions.
Contact us
If you have questions about the desk review process, contact bfadiasmonitoring@nsf.gov.