Finding 376021 (2023-002)

2023-002 Federal Agency: Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Listing Number: 21.027 Federal Award Identification Number and Year: 22GOV0019AA, 2023 Pass-Through Agency: State of Connecticut Office of Workforce Strategy Pass-Through Number: SLFRP0128 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Organization must comply with indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance. Condition: The Organization did not comply with indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance. Questioned costs: $28,026 Context: The Organization did not comply with indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance. Cause: Management was unaware of the requirement to use the actual base costs incurred multiplied by the 10% deminimis cost rate. Instead, they recorded the indirect costs monthly using an allocation of 1/12 of the indirect costs per the budget. Effect: There is a risk that indirect costs are not calculated correctly per the actual base costs incurred. Repeat Finding: No Recommendation: We recommend that the Organization review and follow the indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance. Views of Responsible Officials: There is no disagreement with the audit finding.