Finding Text
Finding number: 2025-002 Federal agency: U.S. Department of Health and Human Services Program: Foster Care Title IV-E Assistance Listing #: 93.658 Award year: 2025 Compliance requirement: Allowable Costs Criteria Per 2 CFR §200. 414, De minimis rate. The de minimis rate of 15% of modified total direct costs (“MTDC”) can be used indefinitely by organizations that have never had a negotiated indirect cost rate for contracts entered into after October 1, 2024. Prior to that the 10% de minimis rate should be used. Condition During the audit, it was noted that TPFC applied an indirect cost rate exceeding the 10% de minimis rate that should have been used for 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 $255,548 Identification as a Repeat Finding, if applicable Finding #2024-003 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.