EPA Questions $1.7 Million in Indirect Costs Charged by Grantee

In a just released audit report, the United States Environmental Protection Agency has questioned $1.7 million in indirect costs charged by a non profit grantee. The report recommends that the EPA disallow all the indirect costs charged as the grantee had no approved indirect cost agreement in place. The report also states that the organization used an inequitable method for allocating indirect costs to various EPA awards. We are aware that the EPA has been warning grantees without approved IDC agreements not to charge indirect cost to their EPA grants.