Finding Text
Criteria or Specific Requirement: Appendix VII to Part 200 - Indirect costs are normally charged to Federal awards by the use of an indirect cost rate. A separate indirect cost rate is usually necessary for each department or agency of the unit claiming indirect costs under Federal Awards.
Condition: Indirect costs were calculated using a rate of 28.58% which exceeded allowable rate of 28.39%.
Questioned Costs: $967.88
Context: Comparison of the actual indirect rate calculated by fiscal 2023 expenses compared to the allowed indirect rate.
Cause: The District relied on CDE website for calculation of indirect cost rate instead of calculating it themselves resulting in an incorrect rate being applied.
Effect: Indirect costs reimbursed were more than allowable rate.
Repeat Finding: No
Recommendation: We recommend the District review its indirect cost journal entry after verifying all direct journal entries are posted and total indirect costs for the three year grant are within the allowable amount.
Views of Responsible Officials: There is no disagreement with the audit finding.