Finding Text
Criteria Per 2 CFR §200. 414, De minimis rate. The de minimis rate of 10% of modified total direct costs (“MTDC”) can be used indefinitely by organizations that have never had a negotiated indirect cost rate. Condition During the audit, it was noted that CVCA applied an indirect cost rate exceeding the 10% de minimis rate to certain expenditures. Cause CVCA did not adequately monitor the amount of indirect costs applied to their current award. Effect CVCA charged indirect costs in excess of the permitted de minimis rate to the federal award, resulting in questioned costs. Questioned Costs $394,760. Identification as a Repeat Finding, if applicable Prior year finding 2024-001. Recommendation It is recommended that CVCA implement procedures to regularly monitor the application of indirect cost rates to ensure compliance with applicable federal regulations. View of Responsible Officials CVCA agrees with the finding.