Finding Text
Federal Agency: Department of Health and Human Services
Federal program title: Block Grants for Community Mental Health Services
Assistance Listing Number: 93.958
Pass-Through Agency: Illinois Department of Human Services
Pass-Through Number: 45CCB03514; 45CCB04278; 45CCB00648
Award Period: 07/01/2023 – 06/30/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance
Criteria or specific requirement: As described in § 200.403, costs must be consistently charged as either indirect or direct costs, but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all Federal awards until such time as a non-Federal entity chooses to negotiate for a rate, which the non-Federal entity may apply to do at any time.
Condition: The Organization incorrectly calculated indirect costs for one of thirteen transactions selected for testing.
Questioned Costs: $41
Context: The Organization calculates the indirect costs to be reimbursed based on total direct expenses less contractual services. For one of the thirteen transactions selected for testing, the indirect cost was not calculated correctly.
Cause: Oversight.
Effect: The Organization requested reimbursement for indirect costs in excess of their provisional rate of 28.28%.
Repeat Finding: No
Recommendation: We recommend management recalculate the indirect cost rate based on the monthly grant invoice submitted to the funder for reimbursement to ensure indirect costs are appropriate.
Views of responsible officials: There is no disagreement with the audit finding.