Finding Text
Section III: Federal Awards Findings
Finding 2023-02: 84.027/84.173 Special Education Cluster
Criteria: The grant agreements allow an indirect cost rate to be applied to the direct costs of the grant expenditures.
Condition: Excess indirect costs of $70,531 were requested and received.
Cause: The excess was primarily due to a period of transition of business staff. This created a duplicated claim for 2 quarters for a
majority of the amount identified.
Effect or Potential Effect: The management has been in contact with the oversight agencies to ensure excess funds are returned or
applied to subsequent requests. The impact was that indirect costs were paid through other funds instead.
Questioned Costs: The costs of $70,531 were related to excess requests.
Context: The indirect accidently claimed twice due to change in staff.
Recommendation: We recommend that management make 1 indirect request once at the end of the grant period. This request will be
for the total amount of the indirect that would be allowed to avoid claiming indirect on the same cost more than once.
Views of the Responsible Officials and Planned Corrective Actions: Management accepts the recommendation and plan to calculate an
estimated indirect cost at the beginning of the contract to ensure programs are not over spent with the actual request being submitted
upon closing the program.