Grant fees: updated, revised, and with new links

The report from the outside auditor coming back to City Council tonight has a bit of news bearing on the school department: the outside auditor discussed the difference of opinion on the amount assessed by the city to the Worcester Public Schools on grants. The auditor found:

Internal controls should be implemented to ensure that original contracts or contract amendments are filed with the granting agency that specify the actual indirect cost rate used to charge the indirect costs to the grant program, and that all salaries and wages expenses charged to the grant program are supposed by by the required documentation, as prescribed in OMB Circulars A-87 and A-133.

What does that mean in English?
When the schools (or an agency) file for a grant, they have to specify how much is going to be taken in "indirect costs." In the case of the Worcester Public Schools, that's the grant assessment taken by the City.
The legal opinion given to the School Committee by the state Department of Elementary and Secondary Education states that the School Committee has to VOTE grant assessment (you might remember that we've been doing that?). Thus, all WPS grants say 1% will go to the City.
And then the City takes 3%.
Thus the inconsistency.
The City--and I should note here that it is the City making the response, as the school department has not been allowed to weigh in--responds that, in essence, there's a difference of opinion (or that they're taking money the School Committee hasn't voted to give them; take your pick).
Councilor Lukes is looking for a legal opinion from the City Solicitor.
The City Manager, if I'm understanding him correctly, seems to be saying that he intends to move forward with the auditor's findings. (I think? Maybe?)