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Financial Management

Cost Allocation and Indirect Cost Rates

C-FACTS and Holmes have experience working with federal government agencies and grantees to build better financial management systems, strengthen internal controls and develop cost allocation plans and indirect cost rates. C-FACTS helped the City of Detroit significantly improve their financial management systems and ability to track funds. During our review, we identified over 1,000 idle projects and over $25M in unspent funds CDBG that were not being properly tracked. This resulted in reprogramming of $20M in CDBG funds and positioned the City to meet the CDBG timeliness test. We also helped the City revamp indirect cost rate methodologies resulting in a reduction in their rate to better mirror industry norms. We also conducted an Indirect Cost Rate training session for the local HUD field office in Detroit for all Michigan HUD grantees.

 

 

Holmes and Company conducts financial reviews of state and local transportation authorities for the Federal Transit Administration under their Financial Management Oversight (FMO) program.  These reviews involve the assessment of the financial management systems and the related internal controls using the financial management systems standards of the “Common Rule” (49 CFR Part 18).  Holmes and Company conducts reviews and provides technical assistance on Cost Allocation Plans (CAPs) submitted by Transit agencies. A full service accounting firm with Certified Public Accountants (CPA), the firm is tasked with conducting forensic audits as a follow up to fraudulent costs and/or deficient areas cited by the U.S. Office of the Inspector General.  Reviews are conducted of Transit authorities and State Departments of Transportation located throughout the United States, such as the Tennessee Department of Transportation, San Francisco Municipal Transportation Agency, Metropolitan Washington Airport Authority, Miami-Dade Transit, Metropolitan Atlanta Rapid Transportation Authority, Greater Cleveland Regional Transit Authority and Rhode Island Department of Transportation, to name a few.  Holmes and Company also prepares and audits CAPs and indirect cost rates (ICR) for state and local agencies.  Since 2008, Holmes has prepared the ICR for the New Orleans Regional Transit Authority receiving approval from the Cognizant Agency without adjustment.