Finding 1130976 (2024-004)

Criteria: Only allowable costs should be charged to federal award programs in accordance with 2 CFR, part 200, subpart E. Condition: The Organization overbilled certain cost-reimbursable grants, one of which was the federal award. Cause: For cost-reimbursable grants, there was no procedure to ensure total amounts billed matched allowable expenses or the amounts billed agreed with recognized revenues. Additionally, the payroll taxes and employee benefits allocated to grants were inaccurately calculated. The percentage used was higher than the actual payroll taxes and benefits compared to total wages. Effect: The amount of the overbilling totaled $19,209. Recommendation: We recommend management implement procedures to ensure billed amounts match allowable expenses for cost-reimbursable grants. Additionally, the percentage used to allocate payroll taxes and benefits should be periodically updated to align with actual expenses. Views of Responsible Officials: The Organization agrees with the recommendation and is in the process of implementing appropriate procedures so that cost-reimbursable grants are accurately and timely billed.