FAC Explorer

Finding 6102 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2023-12-21
Audit: 7976
Organization: Central Pines Regional Council (NC)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: Indirect costs allocated to federal programs exceeded the approved rate by $48,860.
  • Impacted Requirements: Compliance with U.S. Department of the Interior's indirect cost rate is essential for reimbursement.
  • Recommended Follow-Up: Implement annual reviews of automatic allocations to ensure they align with the approved rate.

Finding Text

Finding 2023-001 Nonmaterial Noncompliance – Special Tests Criteria: The Council should ensure that indirect costs allocated to federal programs do not exceed the indirect cost rate approved by U.S. Department of the Interior. Condition: Indirect cost allocation appears to be greater than the approved rate. Questioned costs: Using indirect cost schedule provided by the Council, salary and fringe benefits and respective indirect costs allocated to federal projects were allocated $48,860 over the allowable limit. Context: Review of the indirect costs applied to federal projects appeared to be higher than the approved rate. Effect: Indirect costs allocated to projects that exceed the approved rate may not be reimbursed or the Council may be required to pay back the difference to the funding agency if reimbursement has already occurred. Cause: Allocation automatically generated. Recommendation: We recommend procedures be implemented to ensure that the automatic allocation is reviewed and reconciled with the approved rate at least annually. Management’s Response: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

2023-001 Name of Contact Person: Hope Tally Corrective Action: Management recognizes a systematic error occurred to create an immaterial allocation overage. Management is taking steps to correct the system setup to prevent errors and creating new processes to catch any system overages in a timely and consistent manner. Proposed Completion Date: 6/30/2024

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $990,970
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $474,888
93.053 Nutrition Services Incentive Program $378,818
21.027 Coronavirus State and Local Fiscal Recovery Funds $278,239
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $171,995
11.307 Economic Adjustment Assistance $157,387
93.052 National Family Caregiver Support, Title Iii, Part E $127,914
64.044 Vha Home Care $100,056
93.071 Medicare Enrollment Assistance Program $62,358
20.205 Highway Planning and Construction $54,000
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $48,786
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $46,305
66.460 Nonpoint Source Implementation Grants $40,699
14.239 Home Investment Partnerships Program $26,871
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $19,177
81.086 Conservation Research and Development $18,105
10.433 Rural Housing Preservation Grants $13,081
66.454 Water Quality Management Planning $10,471
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $685