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.