Finding Text
Finding 2022-002: U.S. Department of Health and Human Services - Regents of the University of California San Francisco - Allergy and Infectious Diseases Research - Assistance Listing No. 93.855.U.S. Department of Health and Human Services - Palo Alto Veterans Institute for Research - Family and Community Violence Prevention Program - Assistance Listing No. 93.910. Allowable Costs, Significant Deficiency Criteria: 2 CFR 200 requires indirect costs to be accorded consistent treatment to all federal awards. Condition: The indirect cost rate was not correctly charged to two federal awards during the year. Effect: One federal awards was under billed and one was over billed for indirects which resulted in an audit adjustment. Questioned Costs: None. Context: During our testing of indirects, we noted two out of the seven federal awards tested were not charged the correct indirect cost rate for the year. Cause: The Organization did not include an indirect charge on each invoice for one federal award and charged the incorrect rate on another federal award. Recommendation: We recommend the Organization enhance its year-end close process to include calculating the indirects charged to all federal awards for the entire year to ensure the indirects have been properly charged to the grant and with the correct rate.