Condition: Internal controls should be in place to ensure that an overexpenditure in indirect costs does not take place
by the district.
Criteria: The District is required to use an indirect cost rate for this program, and is required not to spend indirect costs
over that amount.
Effect: Without a proper review and allowable indirect cost calculator the District will not be able to determine
allowable costs.
Cause: The District's indirect cost rate calculator was incorrect causing the excess costs.
Recommendations: Implement a review process to ensure calculations were conducted correctly.
Management's Response: The District's Indirect costs worksheet to determine allowable costs had an error in the
calculation. The District has addressed the cause of the error and future amounts should calculate correctly.