Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: COVID-19 Vaccines Community-Based Education & Outreach (IVAX)
Assistance Listing Number: 93.268
Pass-Through Entity: Illinois Primary Health Care Association
Pass-Through Number: N/A
Award Periods: July 1, 2022 – March 31, 2023
Type of Finding: Immaterial Noncompliance and Significant deficiency in internal control over compliance
Criteria:
A non-Federal entity that does not have a current negotiated indirect cost rate, may elect to charge a de minimis rate of 10% of modified total direct costs (MTDC) which may be used indefinitely. No documentation is required to justify the 10% de minimis indirect cost rate. As described in § 200.403, costs must be consistently charged as either indirect or direct costs, but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all Federal awards until such time as a non-Federal entity chooses to negotiate for a rate, which the non-Federal entity may apply to do at any time.
Condition:
Legacy incorrectly calculated the reimbursement of in-direct costs when using the de minimis rate of 10%.
Questioned Costs:
$3,404.
Context:
Three (3) of three (3) in-direct cost transactions selected for testing.
Cause:
Unknown.
Effect:
Calculating indirect costs incorrectly could result in unallowable costs being charged to the grant.
Repeat Finding:
No.
Recommendation:
We recommend that a member of management review the monthly calculation of indirect costs to ensure it is calculated correctly.
Views of Responsible Officials:
There is no disagreement with the audit finding.