FAC Explorer

Finding 969952 (2021-004)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2021
Accepted
2024-04-16
Audit: 303685
Organization: Tucson Audubon Society (AZ)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Significant deficiencies in internal controls over compliance were identified, specifically regarding the incorrect application of indirect cost rates.
  • Impacted Requirements: Noncompliance with 2 CFR 200.414 regarding indirect costs and documentation of personnel expenses, leading to potential improper payments.
  • Recommended Follow-Up: Implement review procedures to ensure the correct 10% de minimis rate is applied and that costs align with federally approved budgets.

Finding Text

Federal Agency: U.S. Department of Interior Federal Program Name: National Park Service Conservation, Protection, Outreach, and Education (POE) Research and Development Cluster (RDC) Assistance Listing Number: 15.954 (POE) 15.608 and 15.945 (RDC) Award Period: June 2020 through August 2024 (POE) September 2019 through January 2024 (RDC) Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or Specific Requirement: In accordance with 2 CFR 200.414 Indirect Costs, any nonfederal entity that does not have current negotiated rate and elects the 10% de minimis rate must be applied to modified total direct costs (MTDC) indefinitely and in accordance with 2 CFR 200 UG, costs of compensation are allowable to the extent that they satisfy the specific requirements of the UG, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the nonfederal entity consistently applied to both federal and nonfederal activities; (2) Follows an appointment made in accordance with a nonfederal entity's laws and/or rules or written policies and meets the requirements of federal statute, where applicable; and (3) Is determined and supported as provided in accordance with the UG, Standards for Documentation of Personnel Expenses, when applicable. Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the nonfederal entity, (iv) Encompass both federally assisted and all other activities compensated by the nonfederal entity on an integrated basis, but may include the use of subsidiary records as defined in the nonfederal entity's written policy; (v) Comply with the established accounting policies and practices of the nonfederal entity; and (vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a federal award and nonfederal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition/Context: We noted instances where an indirect rate of 17.5 percent was charged to federal awards instead of the 10 percent de minimis rate approved in the budgets. Additionally, we were unable to obtain evidence of federal approval of a 1.8 percent administration fee charged to gross wages as follows: • POE & RDC - For 4 of the 4 months tested, 17.5 percent of indirect rate was charged to various awards instead of the 10 percent de minimis rate. • POE - For 12 of the 36 items tested, we noted a 1.8 percent administration fee charged to gross wages. • RDC - For 22 of the 22 items tested, we noted a 1.8 percent administration fee charged to gross wages. Questioned Costs: None greater than $25,000 per major program. Cause: Not aware of the requirements. Effect: Failure to comply with 2 CFR 200 can lead to improper payments charged to programs. Repeat Finding: No Recommendation: We recommend management incorporate review control procedures to ensure the 10 percent de minimis rate is properly applied in accordance with UG and ensure appropriate costs are charged to the awards consistent with their federally approved budgets. Views of Responsible Officials: There is no disagreement with the audit finding. See corrective action plan.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 393497 2021-004
    Significant Deficiency
  • 393498 2021-004
    Significant Deficiency
  • 393499 2021-004
    Significant Deficiency
  • 393500 2021-004
    Significant Deficiency
  • 393501 2021-004
    Significant Deficiency
  • 393502 2021-004
    Significant Deficiency
  • 393503 2021-004
    Significant Deficiency
  • 393504 2021-004
    Significant Deficiency
  • 393505 2021-004
    Significant Deficiency
  • 393506 2021-004
    Significant Deficiency
  • 393507 2021-004
    Significant Deficiency
  • 393508 2021-004
    Significant Deficiency
  • 393509 2021-004
    Significant Deficiency
  • 393510 2021-004
    Significant Deficiency
  • 393511 2021-004
    Significant Deficiency
  • 393512 2021-004
    Significant Deficiency
  • 393513 2021-004
    Significant Deficiency
  • 393514 2021-004
    Significant Deficiency
  • 393515 2021-004
    Significant Deficiency
  • 393516 2021-004
    Significant Deficiency
  • 393517 2021-005
    Significant Deficiency
  • 393518 2021-005
    Significant Deficiency
  • 393519 2021-005
    Significant Deficiency
  • 393520 2021-005
    Significant Deficiency
  • 393521 2021-005
    Significant Deficiency
  • 393522 2021-005
    Significant Deficiency
  • 393523 2021-005
    Significant Deficiency
  • 393524 2021-005
    Significant Deficiency
  • 393525 2021-005
    Significant Deficiency
  • 393526 2021-005
    Significant Deficiency
  • 393527 2021-005
    Significant Deficiency
  • 393528 2021-005
    Significant Deficiency
  • 393529 2021-005
    Significant Deficiency
  • 393530 2021-005
    Significant Deficiency
  • 393531 2021-005
    Significant Deficiency
  • 393532 2021-005
    Significant Deficiency
  • 393533 2021-005
    Significant Deficiency
  • 393534 2021-005
    Significant Deficiency
  • 393535 2021-005
    Significant Deficiency
  • 393536 2021-005
    Significant Deficiency
  • 393537 2021-003
    Material Weakness
  • 393538 2021-003
    Material Weakness
  • 393539 2021-003
    Material Weakness
  • 393540 2021-003
    Material Weakness
  • 393541 2021-003
    Material Weakness
  • 393542 2021-003
    Material Weakness
  • 969939 2021-004
    Significant Deficiency
  • 969940 2021-004
    Significant Deficiency
  • 969941 2021-004
    Significant Deficiency
  • 969942 2021-004
    Significant Deficiency
  • 969943 2021-004
    Significant Deficiency
  • 969944 2021-004
    Significant Deficiency
  • 969945 2021-004
    Significant Deficiency
  • 969946 2021-004
    Significant Deficiency
  • 969947 2021-004
    Significant Deficiency
  • 969948 2021-004
    Significant Deficiency
  • 969949 2021-004
    Significant Deficiency
  • 969950 2021-004
    Significant Deficiency
  • 969951 2021-004
    Significant Deficiency
  • 969953 2021-004
    Significant Deficiency
  • 969954 2021-004
    Significant Deficiency
  • 969955 2021-004
    Significant Deficiency
  • 969956 2021-004
    Significant Deficiency
  • 969957 2021-004
    Significant Deficiency
  • 969958 2021-004
    Significant Deficiency
  • 969959 2021-005
    Significant Deficiency
  • 969960 2021-005
    Significant Deficiency
  • 969961 2021-005
    Significant Deficiency
  • 969962 2021-005
    Significant Deficiency
  • 969963 2021-005
    Significant Deficiency
  • 969964 2021-005
    Significant Deficiency
  • 969965 2021-005
    Significant Deficiency
  • 969966 2021-005
    Significant Deficiency
  • 969967 2021-005
    Significant Deficiency
  • 969968 2021-005
    Significant Deficiency
  • 969969 2021-005
    Significant Deficiency
  • 969970 2021-005
    Significant Deficiency
  • 969971 2021-005
    Significant Deficiency
  • 969972 2021-005
    Significant Deficiency
  • 969973 2021-005
    Significant Deficiency
  • 969974 2021-005
    Significant Deficiency
  • 969975 2021-005
    Significant Deficiency
  • 969976 2021-005
    Significant Deficiency
  • 969977 2021-005
    Significant Deficiency
  • 969978 2021-005
    Significant Deficiency
  • 969979 2021-003
    Material Weakness
  • 969980 2021-003
    Material Weakness
  • 969981 2021-003
    Material Weakness
  • 969982 2021-003
    Material Weakness
  • 969983 2021-003
    Material Weakness
  • 969984 2021-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
15.954 National Park Service Conservation, Protection, Outreach, and Education, P20ac00896 $141,167
15.954 National Park Service Conservation, Protection, Outreach, and Education, P21ac11178 $114,089
15.944 Natural Resource Stewardship, P20ac00975 $83,809
15.944 Natural Resource Stewardship, P21ac10083 $60,493
15.608 Fish and Wildlife Management Assistance $48,359
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p21ac11164 $46,450
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac00920 $42,373
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac01078 $41,938
15.944 Natural Resource Stewardship, P20ac01009 $40,705
15.954 National Park Service Conservation, Protection, Outreach, and Education, P21ac10039 $34,371
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac00904 $33,623
15.954 National Park Service Conservation, Protection, Outreach, and Education, P21ac11349 $32,561
15.954 National Park Service Conservation, Protection, Outreach, and Education, P21ac11180 $25,161
15.944 Natural Resource Stewardship, P20ac01008 $19,918
15.664 Fish and Wildlife Coordination Assistance, F20ac00283 $17,252
15.954 National Park Service Conservation, Protection, Outreach, and Education, P20ac00515 $15,640
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac00900 $12,937
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p19ac00794 $6,940
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac00936 $6,333
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p19ac00704 $5,418
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac00990 $4,486
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p18ac00793 $3,383
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac00907 $2,862
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p21ac11197 $2,508
15.945 Cooperative Research and Training Programs Ð Resources of the National Park System - McA#p16ac0027 -Tan#p20ac00804 $2,341