Finding Text
Finding 2022-009
93.323 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Criteria
CFR 200.413(a) states “Direct costs are those costs that can be identified specifically with a particular final cost
objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned
to such activities relatively easily with a high degree of accuracy.”
Condition
Indirect costs were classified as direct costs to the program.
Cause:
In the County’s general ledger, certain indirect costs are classified as personnel services expenditures. When
completing the quarterly reports, these were not identified and separately classified as indirect costs.
Effect
By improperly classifying indirect costs as direct costs, the County may exceed the indirect cost limits outlined by
the grant agreement.
Questioned Costs
$7,855
Recommendations:
The County should correctly identify costs as indirect costs.
Views of Responsible Officials
The County is implementing proper controls over policies, procedures, training, and review processes especially
where these relate to Federal grant projects. Through this educational endeavor the County will correctly be able
to identify costs as indirect versus direct.