Finding Text
CONDITION: Internal controls should be in place to ensure that an overexpenditure in indirect costs does not take place by the District. CRITERIA: The District is required to use an indirect cost rate for this program, and cannot charge indirect costs over that amount. EFFECT: Without a proper review and allowable indirect cost calculator the District will not be able to determine allowable costs. CAUSE: The District overcharged indirect costs to the cluster. RECOMMENDATIONS: We recommend that the District implement a review and approval process to ensure calculations and all adjusting journal entries are reviewed and approved by someone independent of their preparation. MANAGEMENT'S RESPONSE: The District will implement a formal review and approval process for indirect charge calculations to ensure that these calculations are consistent with the data recorded in the accounting system.