Finding Text
Finding 2024-001 Negotiated Indirect Cost Rate Agreement
Federal Agency: Department of Health and Human Services; Health Resources and Services
Administration.
Federal Program: Maternal and Child Health Federal Consolidated Programs.
Assistance Listing Number: ALN 93.110.
Pass-through Entity: Not applicable.
Award Identification Number and Year: UJ6MC45789-02-02 and 2024.
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 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: During 2023, it was noted that AcademyHealth had a Health and Human Services
approved provisional rate through December 31, 2022 and continued to use the provisional rate
through 2023 and part of 2024. AcademyHealth did not submit a new indirect cost proposal to the
cognizant agency within the required timeframe.
Cause: Internal controls were not in place to ensure timely submission of the indirect cost proposals.
Effect or Potential 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).
Questioned Costs: Questioned costs were not identified.
Context: 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 and has been
subsequently negotiated and approved in March 2025.
Identification as a Repeat Finding, if Applicable: Continued Finding 2023-003.
Recommendation: We recommend that AcademyHealth review its internal controls surrounding
indirect costs proposals and develop an effective reporting system to allow AcademyHealth to
monitor and ensure the proposals are prepared and submitted within the deadline.