Finding Text
Finding 2022-001 - Cost Allocation Department of Health and Human Services AL # 93.829 AL Number Grant Number Grant Period 93.829 H79SM083202 02/15/2021 - 02/14/2023 Questioned Costs: $0 How were questioned costs computed: N/A Condition: Arukah has elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. During the year ended December 31, 2022, Arukah did not appropriately apply the rate to all grants. Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards (45 CFR Part 75.414(f) states that if chosen, this methodology once elected must be used consistently for all Federal awards. Cause: Arukah did not perform a true up of the 10 percent de minimis calculation as of December 31, 2022. Effect: Because of the above condition, Arukah was not in compliance this compliance requirement and a significant deficiency in internal control over compliance exists. Recommendation: We recommend Arukah establish procedures to properly apply to 10 percent de minimis indirect cost rate to all grants. View of Responsible Officials: We agree with the recommendation and have begun implementing additional procedures.