Finding Text
Finding 2025-005 Award Year: 2024-2025 Federal program: U.S. Department of Education – 84.425 Education Stabilization Fund Pass-through entity: Oregon Department of Education Criteria: Per 2 CFR 200.303, a non-Federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: The District could not provide documentation of review and approval of the indirect costs charged to the federal program. Additionally, indirect costs in excess of the allowed indirect cost rate of 4.51% were charged to the federal program prior to being corrected. The deficiency in controls over compliance related to indirect costs is considered a significant deficiency. Cause: The cause appears to be related to staff turnover and errors in the calculation to determine indirect costs originally charged to the federal program. Effect or potential effect: Audit procedures identified indirect costs of $1,603 in excess of the allowed indirect cost rate charged to the federal program prior to being corrected. Questioned Costs: As the error was corrected, no questioned costs identified. Context: Indirect costs for the fiscal year were recalculated based on total expenditures charged to the grant. Recommendation: The District should ensure controls related to compliance with indirect cost requirements are implemented. Views of responsible officials: The District understands and concurs with this finding.