Finding Text
Finding number: 2022-005: Allowable Costs/Cost Principles, Research & Development
Cluster
Criteria: Per Part 3 of the Compliance Supplement, for costs that are being allocated, costs
must be allocated uniformly across all programs.
Condition: ABS Institute utilizes cost allocation memorandums to allocate costs to the grant.
Several months of non-payroll costs were not allocated to programs in line with
ABS Institute's cost allocation memorandums. Cause: ABS Institute does not have a formal review process in place to ensure all
allocations are appropriately applied.
Effect or potential
effect:
Possibility of unallowable costs allocated to grants.
Identification as a
repeat finding:
This is a repeat finding from the immediate previous audit, 2021-005.
Recommendation: We recommend that ABS Institute implement a formal review policy to ensure
that non-payroll costs are allocated in line with cost allocation memorandums.
Views of responsible
official:
ABS Institute has made the following changes in response to this finding:
On a monthly basis, the allocations are provided to ABS Institute from our 3rd
party bookkeeper. The allocation process does not change from month-to-month.
On an adhoc basis, a review of the monthly allocations was completed in 2023.