Finding Text
Criteria or specific requirement: 2 CFR Part 200, Appendix IV, Appendix IV to Part 200-Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations requires compliance and proper calculation of indirect costs. Condition: 1 out of 5 samples was incorrectly calculated. Questioned costs: $1,800. Context: During our testing of indirect cost 1 out of 5 samples was incorrectly calculated. More specifically the amount on the subrecipient payments was incorrectly calculated. Cause: Policies and procedures are not in place to ensure proper calculation of indirect cost. Effect: Incorrect indirect cost charged to the grant. Repeat finding: Yes. Recommendation: We recommend the Organization create proper policies and procedures to ensure indirect cost is properly calculated and tracked. Views of responsible officials: There is no disagreement with the audit finding.