Finding Text
Criteria or Specific Requirements: As required by the Uniform Guidance Appendix IV Part 200, item C(2)(c), organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the cognizant agency for indirect costs within six months after the close of each fiscal year. Condition: AcademyHealth had a Health and Human Services approved provisional rate through December 31, 2022. For 2023, the organization continued to use the 2022 approved provisional rate and Federal awards were issued using the same rate. AcademyHealth did not submit a new indirect cost proposal to the cognizant agency within the required timeframe. Effect: Failure to submit a new indirect cost proposal within six months after the close of fiscal year results in noncompliance with the Uniform Guidance Appendix IV Part 200, item C(2)(c). Perspective: A new indirect cost rate proposal to obtain final rates for 2019 through 2022 and requesting provisional rates for 2023 through 2025 was not submitted until July 25, 2024. Cause: Internal controls were not in place to ensure timely submission of the indirect cost proposals. Questioned Costs: Questioned costs were not identified. Repeat Finding: Not applicable. Recommendation: AcademyHealth should review its internal controls surrounding indirect costs proposals and develop an effective reporting system to allow AcademyHealth to monitor and ensure the proposal are prepared and submitted within the deadline.