Northern Nevada International Center

Compliance and Internal Control Systems Over Allowable Costs/Cost Principles and Cash Management - U.S. Department of Health & Human Services, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Assistance Listing Number 93.566 Criteria: As defined in 45 CFR 75, the auditee is required to maintain a system of internal control over compliance designed to provide reasonable assurance that federal award transactions executed are in compliance with the terms and conditions of the federal award, including all allowable indirect and fringe cost rates. Condition: The Center requested indirect costs in excess of expenses incurred. Cause: The Center utilized a historical process to calculate and request indirect costs for reimbursement that was not updated to account for the increase in federal grant awards during the fiscal year. Effect: Reimbursement requests related to indirect costs not incurred resulted in the Center receiving federal award funding in excess of what was allowable. Known Questioned Costs: Requests for reimbursement of indirect costs exceeded indirect costs incurred by $51,980 for this federal award program. Repeat Finding: No Recommendation: We recommend that management design and implement a system whereby only incurred and allowable indirect expenses are submitted for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The Center experienced significant growth in its federal awards during the fiscal year that were not commensurate with the growth in its overhead and indirect costs. As a result, the processes used in prior years to capture and request indirect costs for reimbursement were no longer effective. The Center will reconcile the accounting class utilized in its general ledger system at least quarterly to ensure indirect costs incurred are equal to or exceed the indirect costs requested for reimbursement under federal grant awards.

2019-003 U.S. Department of State Professional and Cultural Exchange Programs ? Citizen Exchanges, CFDA 19.415 Allowable Costs/Costs Principles Material Weakness in Internal Control Over Compliance Grant Award Number: Affects all grant awards included under CFDA 19.415 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to Federal programs must be for allowable costs. To be allowable under Federal awards, costs must be adequately documented. Condition: Amounts charged to the Federal program for payroll were not allocated in accordance with the underlying timesheets. Cause: The Northern Nevada International Center (the Center) did not have adequate internal controls to ensure payroll charged to the Federal program agreed with the underlying timesheets. Effect: The Center could report unallowable costs. Questioned Costs: None reported. Context/Sampling: We tested payroll expenses totaling $71,227 charged to the grant and recalculated the amounts to total $68,658 for the same period based upon the employees? timesheets. Sampling was not used. Repeat Finding from Prior Year: Yes. Recommendation: We recommend the Center enhance internal controls to ensure payroll charged to the Federal program agree with the underlying timesheets. Views of Responsible Officials: The Northern Nevada International Center agrees with this finding.

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