Finding Text
Finding 2024-003: Period of Performance – Indirect Costs Federal award agency: U.S. Department of Treasury Pass-through granting agency: Unified Government of Wyandotte County, Kansas and Kansas City, Kansas Program name and ALN: Coronavirus State and Local Fiscal Recovery Funds, 21.027 (COVID-19) Federal award identification number: SLFRP3214 Federal award year: November 17, 2022 to December 31, 2024 Criteria: The Uniform Guidance stipulates that recipients may apply the De Minimis rate at 10% of total direct costs. However, these indirect costs must be charged during the fiscal period (Section 1 states grant period is November 17, 2022 until December 31, 2024) and in accordance with U.S. GAAP per 2 CFR 200.403(e). Condition: During testing, we identified indirect costs were charged at a 13% rate for 2024 grant expenditures due to a catch up from the 2023 year. Cause: Lack of controls and oversight; change in upper level management/turnover during the grant period. Effect or potential effect: Failure to comply with requirements would result in return of unallowable costs and a breach in agreement and may be basis to recover grant funds by grantor. Questioned costs: $34,869 Context: During testing, we identified indirect costs were not charged to the grant at a 10% rate for the 2024 grant year. As such, the Agency's controls were not operating effectively to ensure appropriate calculations of indirect cost rates through the grant period. Repeat finding: No. Recommendation: We recommend that the Agency establish controls and personnel establish and follow procedures to calculate indirect costs charged against grants in accordance with U.S. GAAP. Views of responsible officials: Management agrees with this finding. See corrective action plan.