Finding Text
Information on the Federal Program: Assistance Listing Number 16.575?Crime Victim Assistance, United States Department of Justice. Pass-Through Entity: Colorado Department of Public Safety. Award Number: 2020-VA-21-562-02. Compliance Requirements: Allowable Costs Type of Finding Noncompliance and significant deficiency. Criteria: The Modified Total Direct Cost (MTDC) base, which is used to calculate the de minimis indirect cost rate, requires that payments over the grant period to contractors in excess of $25,000, be backed out of the MTDC base. Condition: In the third quarter of 2022, we identified an error in the MTDC, where payments to contractors in excess of $25,000 were not backed out properly. Context: One of the four quarters calculation of the indirect cost rate was found to have an error. Cause: There are a limited number of personnel to ensure adequate review is performed, prior to submitting quarterly reimbursements under the grant. Effect or Potential Effect: The Organization may be out of compliance with the terms and conditions of the grant. Questioned Costs: $1,020 Recommendation: The Organization should have controls in place to ensure a more robust review of quarterly reimbursements are performed, including the accuracy of the MTDC base used to calculate indirect costs. Views of Responsible Official: The Organization has hired a full-time Finance Director who will monitor these matters more closely than under the previous structure. The Organization will also review the current controls to ensure a more robust review of quarterly reimbursements are performed The organization will review policies and implement an action plan based on the availability of limited staff.