Finding Text
2022 ? 002: Allowable Indirect Costs Federal Agency: U.S. Department of Interior Federal Program Name: Assistance to Tribally Controlled Community Colleges and Universities Assistance Listing Number: 15.027 Federal Award Identification Number and Year: A19AP00124 ? Year Ended June 30, 2022 Award Period: 7/1/2019 ? 6/30/2024 ____________________________________________________ Federal Agency: U.S. Department of Education Federal Program Name: COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Funds Assistance Listing Number: 84.425K Federal Award Identification Number and Year: P425K200020-20B ? Year Ended June 30, 2022 Award Period: 05/28/2020 ? 06/30/2024 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: Section 200.303, Internal Controls, states that the College shall ?establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Indirect costs should be calculated based on modified total direct costs excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000, as stipulated by the College?s approved indirect cost rate agreement. Condition: The College applied their indirect cost rate to all direct costs of the Programs including tuition remission, scholarships, and payments to students. Questioned costs: The questioned costs have been calculated based on the recalculation of modified total direct costs multiplied by the College?s negotiated indirect cost rate. The known questioned costs for 15.027 totals $148,287. The known questioned costs for 84.425K totals $263,299. Context: As a part of the audit of allowable costs and activities, it was noted that the College was not appropriately calculating the indirect costs to be charged to the federal program in accordance with the stated criteria. Cause: The College did not appropriately calculate the modified total direct costs in accordance with the stated criteria. Effect: The College claimed indirect costs in excess of what would be allowed by the stated criteria. Repeat Finding: No Recommendation: We recommend that the College develop a process and internal controls that will mitigate the risk of incorrectly calculating the indirect costs to be charged to federal programs. Views of responsible officials: There is no disagreement with the audit finding.