Audit Report 5-03: Audit of Indirect Cost Rate of the Walsh Group, P.A.
Date Issued: Monday, October 25, 2004
Report Number: 5-03

On October 25, 2004, the OIG issued Audit Report 5-03, Audit of Indirect Cost Rate of the Walsh Group, P.A.  The OIG conducted this audit in response to a request from the Office of Procurement and Grants Management.  The SBA issues grants to eligible intermediaries for providing financial and technical assistance to small businesses seeking to establish drug-free workplace programs.  The objective of this review was to determine if indirect costs claimed for calendar year 2003 were reasonable, allocable, and allowable in accordance with applicable cost principles set forth in the Federal Acquisition Regulations and the Code of Federal Regulation.  The OIG found that overall, the indirect costs claimed by the recipient were reasonable, allocable, and allowable.  The OIG noted, however, that the recipient revised the budget plan without obtaining prior approval from the Office of Procurement and Grants Management.  Lastly, the OIG noted that the grant award document directed the recipient to have a single audit performed even though SBA’s regulations do not appear to permit such an audit.