Finding Text
Assistance Listing, Federal Agency, and Program Name - Research and Development Cluster Federal Award Identification Number and Year - Various, 2024 Pass-through Entity - Various Finding Type - Significant deficiency and material noncompliance with laws and regulations Repeat Finding - No Criteria - EWI should only charge indirect costs approved in accordance with the provisional indirect cost rate approved by the cognizant granting agency. Condition - EWI overcharged indirect costs to the granting agencies by $26,632 during 2024. Questioned Costs - $26,632 If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - Questioned costs were computed by using the approved indirect cost rates and comparing the indirect costs that were charged to the grants. Context - During audit procedures, all direct costs charged to the grants were reviewed and indirect costs were recalculated based on the approved provisional indirect cost rates. The calculated indirect costs were then compared to the indirect costs actually charged to the grants. The difference was computed as an amount overcharged to the grants of $26,632. Cause and Effect - EWI failed to properly review the indirect costs that were charged to the grants to ensure that indirect costs were properly applied. Recommendation - EWI should periodically review the indirect costs and the approved indirect cost rates that are actually charged to the grants. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding as reported and has taken measures to strengthen the review of indirect costs charged to the grants.