FAC Explorer

Finding 1157342 (2024-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-09-30
Audit: 369626
Organization: The Coleridge Initiative INC (NY)
Auditor: Tonneson & Company PC

AI Summary

  • Core Issue: The organization did not allocate direct costs correctly across multiple projects, violating 2 CFR 200.405(d).
  • Impacted Requirements: Costs must be allocated based on the actual benefits received by each project, leading to under-allocated expenses.
  • Recommended Follow-Up: Management should review and adjust their cost allocation methods to ensure accurate expense recording for each project.

Finding Text

Finding 2024-001 - Significant Deficiency - Direct Cost Allocation Criteria: In accordance with 2 CFR 200.405(d), if a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit. Condition: The Organization improperly allocated certain direct costs to its grant awards during the fiscal year ended December 31, 2024. Cause: The Organizations allocation calculation for certain direct costs did not properly allocate these costs across the projects that were benefitted. Effect: Expenses charged to projects were under-allocated in comparison to the actual time and effort spent on those projects. Recommendation: We recommend that management review their current allocation methods to ensure the expense attibutable to each project is being calculated and recorded correctly.

Corrective Action Plan

An error was identified in the Excel spreadsheet (Model) used to allocate technology costs to projects where Coleridge is obligated to provide Administrative Data Research Facility (ADRF) services. The effect of this error was costs were under-allocated to projects. Corrective Action Plan: 1. The error in the Model has been corrected. 2. Control checks will be built into the Model to highlight when calculations are not working, or outputs fall outside expected ranges. 3. On a monthly basis, the Controller will review the Model and sign off in writing that the allocations are correct. No invoices will be released until the review and sign-off has been completed. 4. On an annual basis, an internal audit will be performed on the Model to validate that calculations are working as intended. The audit will be conducted by a member of the Finance department who is not a user of the Model. Any issues identified during the audit will be documented. The Controller will take action to remediate all issues and certify in writing when this work has been completed. No invoices will be released until the certification has been completed.

Categories

Questioned Costs Allowable Costs / Cost Principles

Programs in Audit

ALN Program Name Expenditures
10.253 Consumer Data and Nutrition Research $498,167
93.558 Temporary Assistance for Needy Families $51,635
10.250 Agricultural and Rural Economic Research, Cooperative Agreements and Collaborations $11,050