Finding Text
Federal Agency: U.S. Department of the Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027
Pass-Through Agency: Connecticut Department of Social Services
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: The Organization must comply with indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance.
Condition: The Organization did not comply with indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance.
Questioned costs: None
Context: The Organization did not comply with indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance.
Cause: Management was unaware of the requirement to use the actual base costs incurred multiplied by the 10% de-minimis cost rate. Instead, indirect costs were calculated based on funds received.
Effect: There is a risk that indirect costs are not calculated correctly per the actual base costs incurred.
Recommendation: We recommend that the Organization review and follow the indirect cost rate guidance set out at 2 CFR section 200.414 within Uniform Guidance
Views of responsible officials: There is no disagreement with the audit finding.