Finding Text
2022-003: Indirect Costs Federal Agency: U.S. Department of Health and Human Services Federal Program: ESSA ? Preschool Development Grants Birth through Five Federal Assistance Listing Number: 93.434 Pass-Through Agency: MN Department of Health and Human Services Pass-Through Number(s): None Award Period: February 8, 2021 through December 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per Uniform Guidance 200.214 Indirect Costs, the Organization is subject to indirect cost regulations, which under the Organization?s internal control structure requires approval of indirect costs prior to submission of reimbursement requests. Condition: There was no documentation of approval of reimbursement requests retained. Questioned costs: None Context: For a three out of five of indirect cost disbursements tested there was no documentation of approval of reimbursement requests retained. Cause: The Organization did not implement a process for reviewing monthly reports prior to submission. Effect: Without the proper procedure in place, there is a heightened risk that drawdowns could be made that are incorrectly calculated, or an erroneous amount not supported by expenditures made by the Organization. Repeat Finding: No Recommendation: We recommend the Organization follow their process to approve reimbursement requests prior to submission and retain documentation of such approval. Views of responsible officials and planned corrective actions: There is no disagreement with the finding.