FAC Explorer

Finding 561764 (2024-002)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-05-29
Audit: 357424
Organization: Altarum Institute and Subsidiaries (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: The Institute included unapproved overhead costs in its indirect cost rate calculation, leading to noncompliance with Uniform Guidance.
  • Impacted Requirements: This affects the compliance with cost principles and the accuracy of indirect cost reimbursements across all awards.
  • Recommended Follow-Up: The Institute should review and update its policies on indirect cost calculations to align with approved rates and ensure compliance.

Finding Text

2024-002 – Indirect Costs Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Activities Allowed and Unallowed, and Allowable Costs/Cost Principles). Program. Research and Development Cluster; all Assistance Listing Numbers; all Award Numbers. Criteria. Per the Institute's negotiated indirect cost rate proposal, each indirect cost rate has an associated cost pool in which indirect cost rate percentages are established. Condition. During our testing of indirect cost rates we observed that overhead was included in the Institute's indirect cost rate reimbursement calculation for one out of the Institute's three indirect cost calculations (the general and administrative calculation). Cause. This condition appears to be an oversight in including a cost in the indirect cost pool base which was not approved in the approved provisional general and administrative indirect cost rate calculation. Effect. As a result of this condition, the Institute did not fully comply with the Uniform Guidance applicable to the above noted grants. Questioned Costs. Costs that were questioned were $239,370. Recommendation. We recommend that the Institute review its policies and procedures in regards to the review of the calculation of indirect costs reimbursement to ensure that it conforms with the approved indirect cost rate and all provisions of the indirect cost rate approved by the Institute's cognizant agency. View of Responsible Officials. Management agrees with the finding and has prepared a corrective action plan.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management Significant Deficiency

Other Findings in this Audit

  • 561760 2024-002
    Significant Deficiency
  • 561761 2024-002
    Significant Deficiency
  • 561762 2024-002
    Significant Deficiency
  • 561763 2024-002
    Significant Deficiency
  • 561765 2024-002
    Significant Deficiency
  • 561766 2024-002
    Significant Deficiency
  • 561767 2024-002
    Significant Deficiency
  • 561768 2024-002
    Significant Deficiency
  • 561769 2024-002
    Significant Deficiency
  • 561770 2024-002
    Significant Deficiency
  • 561771 2024-002
    Significant Deficiency
  • 561772 2024-002
    Significant Deficiency
  • 561773 2024-002
    Significant Deficiency
  • 561774 2024-002
    Significant Deficiency
  • 561775 2024-002
    Significant Deficiency
  • 561776 2024-002
    Significant Deficiency
  • 561777 2024-002
    Significant Deficiency
  • 561778 2024-002
    Significant Deficiency
  • 561779 2024-002
    Significant Deficiency
  • 561780 2024-002
    Significant Deficiency
  • 561781 2024-002
    Significant Deficiency
  • 1138202 2024-002
    Significant Deficiency
  • 1138203 2024-002
    Significant Deficiency
  • 1138204 2024-002
    Significant Deficiency
  • 1138205 2024-002
    Significant Deficiency
  • 1138206 2024-002
    Significant Deficiency
  • 1138207 2024-002
    Significant Deficiency
  • 1138208 2024-002
    Significant Deficiency
  • 1138209 2024-002
    Significant Deficiency
  • 1138210 2024-002
    Significant Deficiency
  • 1138211 2024-002
    Significant Deficiency
  • 1138212 2024-002
    Significant Deficiency
  • 1138213 2024-002
    Significant Deficiency
  • 1138214 2024-002
    Significant Deficiency
  • 1138215 2024-002
    Significant Deficiency
  • 1138216 2024-002
    Significant Deficiency
  • 1138217 2024-002
    Significant Deficiency
  • 1138218 2024-002
    Significant Deficiency
  • 1138219 2024-002
    Significant Deficiency
  • 1138220 2024-002
    Significant Deficiency
  • 1138221 2024-002
    Significant Deficiency
  • 1138222 2024-002
    Significant Deficiency
  • 1138223 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.978 Sexually Transmitted Diseases (std) Provider Education Grants $714,874
93.636 Aca - Reinvestment of Civil Money Penalties to Benefit Nursing Home Residents $659,564
93.226 Research on Healthcare Costs, Quality and Outcomes $546,180
93.110 Maternal and Child Health Federal Consolidated Programs $198,147
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $166,191
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $94,066
93.778 Medical Assistance Program $59,975
10.224 Fund for Rural America_research, Education, and Extension Activities $35,239
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $24,218
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $10,212
93.834 Capacity Building Assistance (cba) for High-Impact Hiv Prevention $9,166