Finding: The Chilton County Board of Education (the "Board") prepared an Indirect Cost Proposal in accordance with Title 2 CFR Part 200, "Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal A wards", Subpart E, "Cost Principles". The Indirect Cost Proposal was approved by the Alabama Department of Education in accordance with the U. S. Department of Education Delegation Agreement #2019-116. An indirect cost rate of 9 .62% was approved in the Indirect Cost Proposal for unrestricted programs. This allowed the Board to charge the unrestricted indirect cost rate of9.62% against the indirect cost base for the Elementary and Secondary School Emergency Relief (ESSER) Fund, one of the subprograms of the Education Stabilization Fund. The Board did not calculate the indirect cost base in accordance with the Indirect Cost Proposal, and thus charged indirect costs in excess of those allowed by the Indirect Cost Proposal. Controls were not in place to ensure that the indirect cost base and indirect costs charged were calculated correctly. As a result, indirect costs were charged against the ESSER fund in excess of what was allowed by the Indirect Cost Proposal. Recommendation: The Board should implement controls to ensure the indirect cost base and indirect costs charged are calculated correctly. Response/Views: The board agrees with this finding. Corrective Action Planned: Controls have been put in place to ensure the indirect cost base is calculated correctly. Spreadsheet was created to verify allowable expenditures. Calculations will be checked no less than quarterly and verified at fiscal yearend. Anticipated Completion Date: Verified FY23 indirect cost is being calculated correctly in September 2023. Contact Person: Cheri' Miley Wright, Interim CSFO