Finding Text
Condition: The Organization charged indirect costs to the grant that exceeded the maximum allowed amount under the grant. The excess indirect cost charged to the grant was $24,838. Criteria: Recipients and subrecipients that do not have a current Federal negotiated indirect cost rate (including provisional rate) may elect to charge a de minimis rate of up to 10 percent of modified total direct costs (MTDC). Cause: The Organization charged indirect costs based on the rate in the grant award agreement. Effect: The costs are unallowable under the grant. Context: The total amount of indirect costs charged to the grant was $88,155. Questioned Costs: $24,838. Recommendation: We also recommend the Organization charge the 10 percent de minimis indirect cost rate to the grant until a provisional indirect cost rate is received from the federal government