NETHOPE, INC.Non-Profit

Information on the Federal Program: USAID Foreign Assistance for Programs Overseas, CFDA #98.001, Period of Performance: September 2010 through September 2020. Criteria: Per 2 CFR 200.84, a questioned cost means a cost that is questioned by the auditor because of an audit finding which resulted from a violation or possible violation of a statute, regulation, or the terms and conditions of a Federal award. Condition: The Organization billed an amount during fiscal year 2019 above its provisional indirect cost rate of 29.08%. Questioned Costs: The amount of indirect costs billed over the provisional rate amount to $35,458. Cause: The Organization submitted documentation to USAID during the year ended June 30, 2019 requesting a final indirect cost rate of 31.27%. In May 2019, the Organization billed an amount in excess of its provisional indirect cost rate of 29.08% in advance of receiving approval of the final indirect cost rate. As of March 25, 2020, the Organization had not received approval of the final indirect cost rate. Effect: The Organization withdrew funds in excess of allowable indirect costs. Context: Indirect costs withdrawn in excess of the provisional rate of 29.08% totaled $35,458. Identification as a repeat finding: This finding is not a repeat finding for the Organization. Recommendation: We recommend for an additional level of review to occur to ensure the reimbursement for indirect costs is in line with approved rates. View of responsible individuals and planned corrective action: To prevent future occurrences, the Finance Manager will annually create a spreadsheet which calculates the allowable indirect costs for the fiscal year. A comparison will be made between the amount calculated for allowable indirect costs to the amount recorded and requested for reimbursement. The Finance Manager will have the Chief of Party review the spreadsheet and sign off on the calculation.