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$6 MILLION IN NATIONAL SENIOR CITIZENS EDUCATION AND RESEARCH CENTER'S CLAIMS QUESTIONED
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At DOL's request, we audited the lease buyout and
moving cost proposal that NSCERC submitted to
recover a portion of the costs it incurred.NSCERC submitted the costs as a
separate claim, rather than as a part of the
indirect cost submissions, as required. One of
the reasons for questioning costs was that NSCERC did not credit
to DOL its share of the profit realized from the sale
of a building. In addition, NSCERC:
NSCERC disagreed with many of our findings.
The National Senior Citizens Education and Research Center(NSCERC) is one
of the national SCSEP sponsors and annually receives DOL grants (now over $65 million) to provide
subsidized, part-timecommunity service employment and training for about
9,000 older persons with limited incomes. We
audited costs that the NSCERC claimed for
reimbursement under its SCSEP grants for the period from
July 1, 1996, to December 31, 1997. We questioned almost
$3.7 millionof the costs NSCERC claimed for reimbursement under its grants
and an additional $2.2 million of lease buyout and moving expenses it claimed in
a separate indirect cost submission. Many of the findings in this report are
similar to those contained in prior audits. (See Audit Resolution activities at the end of this
section.). We questioned $1.9 million in direct
costs. The majority of the findings resulted
from the failure by NSCERC to credit the DOL grant for refunds
and administrative fees it received from its insurance
company. In addition, we found that NCSERC
charged employee fringe benefit costs for the
DOL grants based on estimates and not on actual costs.
We also questioned $1.8 million of indirect costs that
NSCERC proposedto be charged to the DOL grants. We recommended changes to
the cost-allocation bases so that all
activities are allocated their fair share of
indirect costs in relation to relative benefits
received.
(OA Report No. 18-00-006-03-360, issued March 29, 2000).
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