When initially invoicing, leadership was advised by agency staff to use 34-37% of salaries, wages & payroll expenses and it has been utilized since 2006. Through this process we have learned that we must review this percentage and adjust, as needed, on a quarterly basis.
Management agrees with the finding. The Organization will implement procedures to ensure future Single Audit reports are submitted to the Federal Audit Clearinghouse within the required timeframe.
We will begin reviewing procedures that best fit our ability to more accurately allocate indirect costs charges to Program Services and Management & General.