Audit 17509

3. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS Finding Number 2022-001 CFDA Title and Number Title I Grants to Local Educational Agencies ? 84.010A Federal Award Number / Year 2022 Federal Agency U.S. Department of Education Pass-Through Agency Ohio Department of Education Significant Deficiency ? Allowable Costs/Cost Principles Criteria: 2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. ? 200.430(a) which provides, in part, that costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities. In addition, 2 C.F.R. ? 200.430(h) )(8)(i)(1)(i-iii) states, in part, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; be incorporated into the official records of the non-Federal entity; and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition: We performed a test of controls over allowable costs/cost principles for payroll expenditures charged during fiscal year 2022. Through testing and risk assessment, it was noted that two employees paid from Title I funds that were not on the approved grants listing provided by the grants coordinator. Cause: The School District did not implement policies and procedures to ensure complete and accurate standards for documentation of personnel expenses. Effect: The result of this is an increased risk of non-compliance related to allowable costs and cost principles. Recommendation: We recommend the School District evaluate applicable controls and determine why they were ineffective in preventing non-compliance. Rounds of revisions without clear and effective communication as to the changes made to the listing noted as an area that can be improved upon. School District?s Response: See Corrective Action Plan.

3. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS Finding Number 2022-001 CFDA Title and Number Title I Grants to Local Educational Agencies ? 84.010A Federal Award Number / Year 2022 Federal Agency U.S. Department of Education Pass-Through Agency Ohio Department of Education Significant Deficiency ? Allowable Costs/Cost Principles Criteria: 2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. ? 200.430(a) which provides, in part, that costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities. In addition, 2 C.F.R. ? 200.430(h) )(8)(i)(1)(i-iii) states, in part, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; be incorporated into the official records of the non-Federal entity; and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition: We performed a test of controls over allowable costs/cost principles for payroll expenditures charged during fiscal year 2022. Through testing and risk assessment, it was noted that two employees paid from Title I funds that were not on the approved grants listing provided by the grants coordinator. Cause: The School District did not implement policies and procedures to ensure complete and accurate standards for documentation of personnel expenses. Effect: The result of this is an increased risk of non-compliance related to allowable costs and cost principles. Recommendation: We recommend the School District evaluate applicable controls and determine why they were ineffective in preventing non-compliance. Rounds of revisions without clear and effective communication as to the changes made to the listing noted as an area that can be improved upon. School District?s Response: See Corrective Action Plan.