Finding Text
2023-008 —Allowable Costs and Cost Principles– Significant Deficiency in Internal Control
Over Compliance and Noncompliance
Federal program information:
Funding agencies: U.S. Department of Interior
Titles: Assistance to Tribally Controlled Community
Colleges
ALN Number: 15.027
Award years: 2023
Criteria: According to 2 CFR Section 200.405(b) All activities which benefit from the
recipient’s or subrecipient’s indirect cost, including unallowable activities and donated
services by the recipient or subrecipient of third parties, will receive an appropriate
allocation of indirect costs.
Condition: The College improperly calculated indirect costs for the fiscal year and
overcharged for the federal program by $49,481.
Cause: The College did not have sufficient procedures in place to ensure that indirect cost
charges were calculated correctly.
Effect: The College is not in compliance with Allowable Costs and Cost Principles
requirements.
Questioned Costs: $49,481
Context: Indirect Costs were overcharged by $49,481 during fiscal year 2023.
Recommendation: Enforce policies and procedures to ensure that the calculated rates are in
agreement with the approved indirect cost rate, management should perform reviews of the
calculation to ensure accuracy.
Management’s Response: The College concurs with this finding.