Finding Text
CRITERIA: Per 2 CFR 200.405 and the grant agreement, costs charged to federal awards must be allowable, allocable, and in accordance with the approved indirect cost rate agreement. CONDITION: The entity overcharged indirect costs to the federal award by $1,462 during the year ended September 30, 2025. CAUSE: The entity applied the incorrect indirect cost rate. EFFECT: Overcharging indirect costs reduces costs available for the program and hinders program administration. QUESTIONED COSTS: $1,462 CONTEXT: This error was found in AL #47.084 which was $81,720 of expenses included in the total of $6,097,828 of federal expenditures. Total indirect costs of $906,416 were tested during the period out of which $1,462 were misapplied. PRIOR YEAR FINDING: No RECOMMENDATION: We recommend the entity review and update its grant management procedures to ensure the correct indirect cost rate is applied to all federal awards and that staff are trained on the current rates in effect. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: Please see management’s Corrective Action Plan included in this reporting package.