FAC Explorer

Audit 7976

FY End
2023-06-30
Total Expended
$13.29M
Findings
24
Programs
19
Organization: Central Pines Regional Council (NC)
Year: 2023 Accepted: 2023-12-21
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6102 2023-001 - - N
6103 2023-001 - - N
6104 2023-001 - - N
6105 2023-001 - - N
6106 2023-001 - - N
6107 2023-001 - - N
6108 2023-001 - - N
6109 2023-001 - - N
6110 2023-001 - - N
6111 2023-001 - - N
6112 2023-001 - - N
6113 2023-001 - - N
582544 2023-001 - - N
582545 2023-001 - - N
582546 2023-001 - - N
582547 2023-001 - - N
582548 2023-001 - - N
582549 2023-001 - - N
582550 2023-001 - - N
582551 2023-001 - - N
582552 2023-001 - - N
582553 2023-001 - - N
582554 2023-001 - - N
582555 2023-001 - - N

Programs

ALN Program Spent Major Findings
93.568 Low-Income Home Energy Assistance $990,970 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $474,888 Yes 1
93.053 Nutrition Services Incentive Program $378,818 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $278,239 Yes 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $171,995 Yes 1
11.307 Economic Adjustment Assistance $157,387 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $127,914 - 0
64.044 Vha Home Care $100,056 - 0
93.071 Medicare Enrollment Assistance Program $62,358 - 0
20.205 Highway Planning and Construction $54,000 - 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $48,786 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $46,305 - 0
66.460 Nonpoint Source Implementation Grants $40,699 - 0
14.239 Home Investment Partnerships Program $26,871 - 0
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $19,177 - 0
81.086 Conservation Research and Development $18,105 - 0
10.433 Rural Housing Preservation Grants $13,081 - 0
66.454 Water Quality Management Planning $10,471 - 0
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $685 - 0

Contacts

Name Title Type
LE7MADJMUAD1 Lee Worsley Auditee
9195589321 April Adams Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Council has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards (the “schedule”) includes all federal and state grant activity of Central Pines Regional Council and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and the State Single Audit Implementation Act. Therefore, some amounts presented in this schedule differ from amounts presented in, or used in the preparation of, the basic financial statements.

Finding Details

Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.