Finding Text
Indirect cost proposal Condition: The latest indirect cost proposal filed with U.S. Department of Health and Human Services, the oversight agency for indirect costs, was based on the September 30, 2019 fiscal year. Criteria: Appendix IV to Part 200-Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations, Section C2c, Notification and Approval of Rates stipulates, in part, Organizations that have previously established indirect cost rates must submit a new indirect cost proposal to the oversight agency for indirect costs within six months after the close of each fiscal year. Cause: Not determinable. Effect: The Organization is in noncompliance with appendix IV to Part 200, Section C2c. An indirect cost proposal based on audited financial statements was not filed with the oversight agency for indirect costs within six months after the close of the fiscal year. Recommendation: File an indirect cost proposal with U. S. Department of Health and Human Services based on audited financial statements. In addition, establish procedures to ensure that an indirect cost proposal is filed with the oversight agency for indirect costs within six months after the close of each fiscal year. Views of responsible officials and planned corrective action: The Organization agrees with this finding and will submit the indirect cost proposal to U. S. Department of Health and Human Services based on the audited financial statements. Procedures will be established to ensure an indirect cost proposal is filed with the oversight agency for indirect costs within six months after the close of each fiscal year in the future. See current year corrective action plan.