U.S. Department of Labor Office of Inspector General

Audit Report

THE AMERICAN ASSOCIATION OF RETIRED PERSONS (AARP'S) INDIRECT COST RATES
 

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Report Title: The American Association of Retired Persons (AARP's)  Indirect Cost Rates

Report Number: 18-98-001-07-735

Issue Date: December 11, 1997

The OIG conducted an audit of AARP's proposed final indirect costs and rates for CYs 90, 91 and 92. AARP among other things operates a Senior Community Service Employment Program that provides training and part-time employment to about 8,000 participants. As a result of a number of meetings and discussions, AARP agreed to certain adjustments to its indirect cost pool and allocation bases, and OIG accepted certain costs due to additional information that was provided. OIG recommended, and AARP concurred that the established provisional billing rates be adopted as the final negotiated indirect costs rates. These rates closely approximated the OIG-recommended final indirect cost rates.

In addition, as AARP's operations did not significantly change in CYs 93, 94 and 95, OIG recommended that the established provisional indirect cost billing rates for CYs 91 and 92 be adopted as final negotiated indirect cost rates for CYs 93 thru 95.

Further, because of major changes caused by legislation issued in 1996, OIG recommended that AARP submit a revised proposed final indirect cost plan for CY 96, and adopt those proposed final indirect cost rates as provisional billing rates for CYs 97 and 98.

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