Finding Text
2023 – 010: Review of Indirect Cost Rate Claims related to Coronavirus State and Local Fiscal Recovery Grants
Federal Agency: Department of Treasury
Federal Program Name: COVID-19: Coronavirus State and Local Fiscal Recovery, Various – See SEFA
Assistance Listing Number: 21.027
Federal Award Identification Number and Year: Various – See SEFA
Pass-Through Agency: Various – See SEFA
Pass-Through Numbers: Various – See SEFA
Award Period: Various – see SEFA
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Federal regulations (CFR 200.303), state federal award recipients must establish and maintain effective internal control over federal awards that provides reasonable assurance that federal award recipients are managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards.
Condition: During our testing, we were unable to see evidence of review and approval of two indirect cost claims by someone other than the preparer of the Organization’s indirect cost claims.
Questioned costs: None
Context: These instances were noted during the recalculation of the Organization’s indirect cost rate claim on two separate grants.
Cause: The Organization does not have a process in place that documents review and approval of submitted indirect cost claims.
Effect: The lack of such a control process could result in the Organization claiming incorrect amounts of indirect costs for reimbursement.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the Organization consider implementing a process that documents review and approval of submitted indirect cost claims by someone other than the preparer of such claims. Documentation of contemporaneous review should also be maintained.
Views of responsible officials: There is no disagreement with the audit finding