Finding Text
Criteria: According to “A Guide for Indirect Cost Rate
Determination,” which is based on the cost principles and
procedures required by 2 CFR Part 200, Subpart E &
Appendix IV for non-profit organizations, the Committee is
required to submit the indirect cost rate proposal on an
annual basis to the Office of Cost Determination no later
than six months after the close of the fiscal year.
Condition: As in 2018, 2019, 2020, 2021, and 2022, in fiscal year 2023,
the Committee did not submit their indirect cost rate
proposal by the required deadline of May 31, 2024.
Cause: The Committee waits for the annual audit to be completed
before preparing the indirect cost rate proposal. The annual
audit was not completed prior to May 31, 2024.
Effect: The Committee is not in compliance with annual Office of
Cost Determination’s requirements for their federal indirect
cost rate agreement.
Recommendation: We recommend that the Committee establish a checklist for
significant reporting and submission dates, including the
date for submission of the indirect cost rate proposal.
Management’s
Response: A reporting and submission calendar is established and
being followed.