Finding Text
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Fairfax County, Pass Through Entity Identifying Number 440009926
Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance with Federal Awards
Criteria: The Organization should have processes and procedures in place to properly calculate and drawdown the allowed amount, per 2 CFR 200.414.
Condition: During our audit, we noted that the Organization charged more than the allowed indirect rate of 10%, leading to noncompliance with the program.
Context: During testing, the Organization requested reimbursement for funds in excess of the allowed indirect rate in the amount of $2,735. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over proper calculation and drawdowns of funds were not operating effectively.
Questioned Costs: $2,735, which was calculated by applying the 10% de minimis rate to total direct costs and comparing to the indirect costs charged to the grant per the financial reports.
Identification of Repeat Finding: N/A
Recommendation: We recommend that the Organization implement review procedures to ensure proper calculation of indirect costs charged to federal programs.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.