Finding Text
Federal agency: U.S. Department of Health and Human Services Program: Foster Care Title IV-E Assistance Listing #: 93.658 Award year: 2024 Compliance requirement: Allowable Costs 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 TPFC applied an indirect cost rate exceeding the 10% de minimis rate to certain expenditures. Cause TPFC did not adequately monitor the amount of indirect costs applied to their current award. Effect TPFC charged indirect costs in excess of the permitted de minimis rate to the federal award, resulting in questioned costs. Questioned Costs $526,925 Identification as a Repeat Finding, if applicable N/A Recommendation It is recommended that TPFC implement procedures to regularly monitor the application of indirect cost rates to ensure compliance with applicable federal regulations. View of Responsible Officials TPFC agrees with the finding.