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Audit of Cost Allocation Services' Negotiation and Approval of Indirect Cost Rates for Nonprofit Organizations

Cost Allocation Services (CAS), which is within the Department of Health and Human Services (HHS) Program Support Center, is designated as the Agency to negotiate facility and administrative indirect cost rate agreements for nonprofit organizations receiving the largest dollar value of Federal funds from HHS grant or contract funds. The indirect cost rate agreements are used by grantee institutions to charge Federal programs for administrative and facility costs associated with conducting Federal programs. Previous OIG audits of nonprofit organizations have raised concerns about the indirect cost rate negotiations and subsequent agreements. Our objective will be to assess CAS's indirect rate setting process and determine its compliance with Federal regulations when negotiating and approving indirect cost rates for nonprofit organizations.

Announced or Revised Agency Title Component Report Number(s) Expected Issue Date (FY)
June 2020 Office of the Secretary Audit of Cost Allocation Services' Negotiation and Approval of Indirect Cost Rates for Nonprofit Organizations Office of Audit Services W-00-20-51003 2021