Reading and BeyondNon-Profit

Occupancy Costs Overstated Program Information: Dental Pilot Program CFDA No: 93.778 Questioned Costs: Total - $46,671. Calculation: $72,450 (occupancy costs charged) less $25,779 (allowable occupancy costs). Criteria: Costs charged to the program should be in compliance with the Uniform Guidance for Allowable Costs/Cost Principles Condition: During our review of costs charged to the program, we noted occupancy costs charged were in excess of allowable costs. Occupancy costs were charged monthly at a fixed rate of $1.70 per sq ft for the period of July 2018 through December 2018; and $1.75 per sq ft for the period of January 2019 through June 2019. Effect: Occupancy costs were over charged by $46,671 Cause: Policies and procedures are in place for the Organization to bill costs in compliance with the Uniform Guidance. The Organization did not utilize the guidance in determining the costs charged for occupancy. Recommendation: We recommend the Organization review the Uniform Guidance to determine allowable occupancy; and a review of the invoice is performed prior to submission to ensure that either actual costs are billed or the fixed rate billed is aligned with actual costs incurred.