Audit reports, both Circular A-133 and program specific reports, have been issued for decades. However, with the grants management requirements becoming more voluminous and specific, in many cases the grantee does not have the resources or knowledge to effectively rebut the audit findings being presented.
Federal agencies frequently will disallow funds associated with awards that they have made based on the audit reports presented to them. The value of these findings frequently range into the millions of dollars. Rebutting these disallowances requires an in-depth knowledge of the rules upon which the disallowance was based and an ability to research and compile the available data that could mitigate or eliminate the disallowance.
Assistance
The ICS team can help governmental units or other entities with the resolution of audit or cost allocation plan/indirect cost rate issues related to Federal awards. This can range from an assessment of the Federal position, to the analysis of the issue and related Federal requirements, to the identification of additional documentation to support the original claim.
Experience
A significant number of disallowances relate to a specific requirement of the cost principles or inadequate documentation of the initial claim.
The ICS team has extensive experience in analyzing and reviewing Federal audit and/or other cost disallowances in light of the cost principles.
Formal appeals
Many times a resolution can not be reached by the involved parties. In these situations, most Federal agencies have established an appeals process. This process may either be relatively informal or a very formal, structured process. In either case, the issue may be pursued in the courts.
The ICS team can provide advice and assistance during this entire process. They can assess the relative merits of the various positions in light of the cost principles and recommend alternative approaches.