Recommendation: We recommend that the district re-review all costs charged to the program and isolate direct costs that comply with cost principle requirements. This should only include costs that are documented as directly applicable to the program. Direct costs should be charged at cost. Indirect costs including overhead, general administrative salaries and wages, untracked employee time, coordination fees, and other general and administrative costs associated with inventories should then be excluded from being charged to the program and applied to the grant using the indirect cost rate outlined in the grant agreement and reported accordingly. Further, we recommend the district implement a method of secondary review and approval over calculations for the indirect cost rate to ensure it is calculated completely and correctly