Finding Text
Calculation of Indirect Costs for Continuum of Care (CoC) programs Criteria and Condition: The Indirect Cost Toolkit for Continuum of Care (CoC) and Emergency Solutions Grants (ESG) Programs issued by the U.S. Department of Housing and Urban Development provides specific criteria for costs which are eligible to be included in calculation of the Modified Total Direct Costs (MTDC) used in determining allowable indirect costs. Context: During testing of monthly CoC reimbursement requests it was noted that the 10% de minimus cost rate was applied to all costs included in each reimbursement request, including rental assistance payments which are specifically excluded from the calculation of the MTDC in accordance with the Indirect Cost Toolkit. Cause: YWCA Dayton staff did not have the appropriate knowledge and understanding of CoC program requirements to ensure that only eligible costs were being included in the calculation of the MTDC. Effect: If controls are not in place to ensure that only eligible costs were being included in the calculation of the MTDC, then there could be ineligible costs included in the calculation of the MTDC which would result in an incorrect amount for indirect costs being requested for reimbursement. Questioned Costs: $33,570 Recommendation: We recommend that YWCA Dayton establish effective policies and procedures to ensure the calculation of the MTDC is accurate and includes only eligible costs in accordance with program guidelines. View of Responsible Officials: YWCA Dayton agrees with the finding and will implement the recommendation.