Audit 21561

Finding 2022-001 Significant Deficiency: Allowable Costs and Allowable Activities ? Control Finding ALN 84.287 ? Twenty-First Century Community Learning Centers Federal Agency: U.S. Department of Education Pass-Through Entity: Missouri Department of Education Criteria or Specific Requirement: The Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program. Condition: We noted through procedures performed that salaries allocated to the program were based on estimates of hours worked in the pay period as opposed to actual hours worked resulting in an over-allocation of expenditures. Cause: Internal controls over compliance put in place by management were not designed effectively to ensure a review of allocated versus actual hours work by the federal grant was performed and that proof of such reviews was documented and retained. Effect: The possibility exists that noncompliance with federal requirements related to allowable cost could go undetected as there is no review or true up process for actual hours worked related to the program. Questioned Costs: In a sample of 40 expenditures, total known question costs found totaled $866. Projected likely questioned costs were approximately $5,000, which is less than the $25,000 de minimis threshold. Context: The salary allocation for employees who work on the 21st Century program were allocated based on an estimate of hours worked. In a sample of 40 expenditures, one employee was over-allocated to the program compared to the actual hours worked. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend a review of allocated versus actual hours on a monthly basis prior to submission for reimbursement. Views of Responsible Officials: Management will implement procedures to assure that all costs charged to the 21st Century program are reviewed by a competent individual, and those reviews will be documented.

Finding 2022-001 Significant Deficiency: Allowable Costs and Allowable Activities ? Control Finding ALN 84.287 ? Twenty-First Century Community Learning Centers Federal Agency: U.S. Department of Education Pass-Through Entity: Missouri Department of Education Criteria or Specific Requirement: The Uniform Guidance requires that controls over compliance be properly designed, in place and operating effectively to ensure compliance with the requirements of the federal program. Condition: We noted through procedures performed that salaries allocated to the program were based on estimates of hours worked in the pay period as opposed to actual hours worked resulting in an over-allocation of expenditures. Cause: Internal controls over compliance put in place by management were not designed effectively to ensure a review of allocated versus actual hours work by the federal grant was performed and that proof of such reviews was documented and retained. Effect: The possibility exists that noncompliance with federal requirements related to allowable cost could go undetected as there is no review or true up process for actual hours worked related to the program. Questioned Costs: In a sample of 40 expenditures, total known question costs found totaled $866. Projected likely questioned costs were approximately $5,000, which is less than the $25,000 de minimis threshold. Context: The salary allocation for employees who work on the 21st Century program were allocated based on an estimate of hours worked. In a sample of 40 expenditures, one employee was over-allocated to the program compared to the actual hours worked. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend a review of allocated versus actual hours on a monthly basis prior to submission for reimbursement. Views of Responsible Officials: Management will implement procedures to assure that all costs charged to the 21st Century program are reviewed by a competent individual, and those reviews will be documented.