FAC Explorer

Finding 1829 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-11-14
Audit: 3200
Organization: The Experimental Station: 6100 Blackstone (IL)
Auditor: Sax LLP

AI Summary

  • Core Issue: The Organization failed to monitor indirect costs for federal grants, leading to inconsistent allocation of shared costs.
  • Impacted Requirements: Compliance with federal cost principles and consistent monitoring of indirect costs across all programs.
  • Recommended Follow-Up: Update policies and procedures to establish internal controls for tracking indirect costs and ensure compliance with the calculated indirect cost rate.

Finding Text

Finding No. 2022-002: Allowable Costs/Cost Principles Program: AL# 10.331 - Gus Schumacher Nutrition Incentive Program (GUSNIP) and AL# 93.667 - Illinois Department of Human Services - Social Service Block Grant (IDHS) Federal Grantor: U.S. Department of Agriculture U.S. Department of Health and Human Services Criteria – The Organization should follow federal cost principles and monitor indirect costs for grants throughout the year to ensure that it is allocating shared costs using a consistent method across all programs in the Organization that are at or below the indirect cost rate for the year. Condition – The Organization did not monitor the indirect cost expense/rate charged to each grant for the year ending 2022. Cause – The Organization first accepted Federal grants for year 2021 and is in process of creating procedures to monitor such information. Effect – The Organization did not charge all programs its fair share of shared costs using a consistent method. Questioned Costs – None Repeat Finding – No Recommendation – We recommend that the Organization updates its policies and procedures to ensure it has internal controls in place to monitor the indirect cost charged to grants throughout the year and make sure it is at or below the indirect cost rate calculated for the year as per the cost principles of the Uniform Guidance. View of Responsible Officials – See Corrective Action Plan.

Corrective Action Plan

Action Taken - We concur with the recommendation. Experimental Station finance staff received guidance in 2023 regardingindirect cost allocation and ongoing monitoring of indirect costs. We have engaged an outside accounting firm with government grant expertise to provide bookkeeping services going forward, which will include allocating and monitoring indirect costs.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1830 2022-003
    Material Weakness Repeat
  • 1831 2022-002
    Significant Deficiency
  • 1832 2022-003
    Material Weakness Repeat
  • 578271 2022-002
    Significant Deficiency
  • 578272 2022-003
    Material Weakness Repeat
  • 578273 2022-002
    Significant Deficiency
  • 578274 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.331 Food Insecurity Nutrition Incentive Grants Program $494,239
14.218 Community Development Block Grants/entitlement Grants $310,126
93.667 Social Services Block Grant $281,642
10.175 Farmers Market and Local Food Promotion Program (b) $47,794
10.170 Specialty Crop Block Grant Program - Farm Bill $16,326