Finding 1215020 (2024-010)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2026-05-19

AI Summary

  • Core Issue: The Organization miscalculated the indirect cost rate by not using the approved rates and cost base for administrative expense allocations.
  • Impacted Requirements: This violates the Health and Human Services Grant Policy, which mandates using the negotiated rate and allowable costs for budget periods.
  • Recommended Follow-Up: Re-establish internal controls to monitor allowable expenditures and ensure proper reconciliation of qualifying costs with cash draws.

Finding Text

Finding: Incorrect calculation of indirect cost rate. Criteria: Allowable Costs/ Cost Principles (Non-profit Organization) Per the Health and Human Services Grant Policy Document: "For all recipients […] the negotiated rate in effect at the beginning of each budget period will be used as the basis for determining indirect costs for that budget period. Per the contracts and final rate notifications referenced below, direct salaries and wages excluding fringe benefits are the base for indirect expense allocations. Condition and Context, and Cause: During our audit, we recalculated the indirect cost allocations and noted the Organization was not utilizing the approved rates or cost base in the administrative expense allocation. Amounts were considered unallowable if expenditures exceeded allowable salary expense multiplied by the approved cost rates in the applicable budget periods. See discussion above at 2024-006 additional context/cause. Result: Amounts identified as unallowable costs per the compliance guidance have been included in the contract liability as disclosed in Note 12. See the Summary of Unallowable Costs and Questioned Costs tables for detail on page 56. Recommendation: The auditors recommend the Organization re-implement internal controls to track allowable expenditures and reconcile qualifying costs with cash draws.

Corrective Action Plan

As discussed above Cayuga Centers has engaged grants management advisors who will assist in evaluating this specific finding. To the extent that the finding merely asserts that indirect cost bases were improperly calculated in prior periods, please see Cayuga Centers’ response and actions steps with respect to findings 2024-001 through 006. If, upon full evaluation, Cayuga Centers concurs that indirect costs were improperly charged, it will address the matter with its primary funding agency as part of broader resolution of any unallowable costs.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1214969 2024-003
    Material Weakness Repeat
  • 1214970 2024-004
    Material Weakness Repeat
  • 1214971 2024-005
    Material Weakness Repeat
  • 1214972 2024-006
    Material Weakness Repeat
  • 1214973 2024-007
    Material Weakness Repeat
  • 1214974 2024-008
    Material Weakness Repeat
  • 1214975 2024-009
    Material Weakness Repeat
  • 1214976 2024-010
    Material Weakness Repeat
  • 1214977 2024-011
    Material Weakness Repeat
  • 1214978 2024-012
    Material Weakness Repeat
  • 1214979 2024-013
    Material Weakness Repeat
  • 1214980 2024-003
    Material Weakness Repeat
  • 1214981 2024-004
    Material Weakness Repeat
  • 1214982 2024-005
    Material Weakness Repeat
  • 1214983 2024-006
    Material Weakness Repeat
  • 1214984 2024-007
    Material Weakness Repeat
  • 1214985 2024-008
    Material Weakness Repeat
  • 1214986 2024-009
    Material Weakness Repeat
  • 1214987 2024-010
    Material Weakness Repeat
  • 1214988 2024-011
    Material Weakness Repeat
  • 1214989 2024-012
    Material Weakness Repeat
  • 1214990 2024-013
    Material Weakness Repeat
  • 1214991 2024-003
    Material Weakness Repeat
  • 1214992 2024-004
    Material Weakness Repeat
  • 1214993 2024-005
    Material Weakness Repeat
  • 1214994 2024-006
    Material Weakness Repeat
  • 1214995 2024-007
    Material Weakness Repeat
  • 1214996 2024-008
    Material Weakness Repeat
  • 1214997 2024-009
    Material Weakness Repeat
  • 1214998 2024-010
    Material Weakness Repeat
  • 1214999 2024-011
    Material Weakness Repeat
  • 1215000 2024-012
    Material Weakness Repeat
  • 1215001 2024-013
    Material Weakness Repeat
  • 1215002 2024-003
    Material Weakness Repeat
  • 1215003 2024-004
    Material Weakness Repeat
  • 1215004 2024-005
    Material Weakness Repeat
  • 1215005 2024-006
    Material Weakness Repeat
  • 1215006 2024-007
    Material Weakness Repeat
  • 1215007 2024-008
    Material Weakness Repeat
  • 1215008 2024-009
    Material Weakness Repeat
  • 1215009 2024-010
    Material Weakness Repeat
  • 1215010 2024-011
    Material Weakness Repeat
  • 1215011 2024-012
    Material Weakness Repeat
  • 1215012 2024-013
    Material Weakness Repeat
  • 1215013 2024-003
    Material Weakness Repeat
  • 1215014 2024-004
    Material Weakness Repeat
  • 1215015 2024-005
    Material Weakness Repeat
  • 1215016 2024-006
    Material Weakness Repeat
  • 1215017 2024-007
    Material Weakness Repeat
  • 1215018 2024-008
    Material Weakness Repeat
  • 1215019 2024-009
    Material Weakness Repeat
  • 1215021 2024-011
    Material Weakness Repeat
  • 1215022 2024-012
    Material Weakness Repeat
  • 1215023 2024-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 UNACCOMPANIED ALIEN CHILDREN PROGRAM $5.28M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $260,463