Finding Text
2022-003 ? Indirect Costs Based on Modified Total Direct Costs Federal Agency: Department of Health and Human Services Federal Program: Research and Development Cluster Assistance Listing Number: 93.310 ? Trans-NIH Research Support Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: According to Code of Federal Regulations, 200 CFR 200.68, the recipient must exclude rental costs from the Modified Total Direct Costs (MTDC) subject to the indirect cost rate. Condition: $96,000 rent ($8,000 a month) was included in the MTDC calculation subject the indirect cost rate. Upon testing three of the 12 monthly invoices, we further confirmed all 12 invoices included the rental costs. Questioned Costs: $9,600 (known) Context: $96,000 rent ($8,000 a month) was included in the MTDC calculation subject the indirect cost rate. Cause: MTDC calculation did not exclude rental costs. Effect: The condition identified led to noncompliance with respect to reimbursement of the rent at the 10% de minimis indirect cost rate. Repeat Finding: No Recommendation: We recommend the Blood Bank implement procedures to ensure only allowable charges outlined within 200 CFR 200.68 are included in the MTDC subject to the indirect cost rate. Views of Responsible Officials and Planned Corrective Actions Please refer to the attached Corrective Action Plan.