Audit 300417

Finding: 2023-002 – Allowable Costs Information of Federal Program: Title I Grant to Local Educational Agencies – CFDA No. 84.010A Criteria: 2 CFR Part 200 requires the District to have the following internal controls in place in order to determine allowability under federal awards; 1) Be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E. 2) Conform to any limitations or exclusions set forth in 2 CFR Part 200, Subpart E or in the federal award as to types or amount of cost items. 3) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity. 4) Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost. Condition: During our testing of the District, we noted that three (3) of the nine (9) Title I teachers did not have a signed certification of time on file to support payroll costs charges to the Federal program. Cause: The District did not have proper procedures in place regarding proper documentation of performance within the grant by the employee. Effect or Potential Effect: The breakdown of internal controls in the area could adversely affect the recording, processing and reporting of financial data. Questioned Costs: None Context: Disbursements were made by the District without proper documentation of participation in the grant by the employee. Repeat Finding: No Recommendation: Policies and procedures should be implemented to either obtain the certification of time or have the employee complete a personal activity report (PAR). Views of responsible officials and planned corrective action: Management is in agreement and will implement a Corrective Action Plan, see pages 61-62 of the current year audit.

Finding: 2023-002 – Allowable Costs Information of Federal Program: Title I Grant to Local Educational Agencies – CFDA No. 84.010A Criteria: 2 CFR Part 200 requires the District to have the following internal controls in place in order to determine allowability under federal awards; 1) Be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E. 2) Conform to any limitations or exclusions set forth in 2 CFR Part 200, Subpart E or in the federal award as to types or amount of cost items. 3) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity. 4) Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the federal award as an indirect cost. Condition: During our testing of the District, we noted that three (3) of the nine (9) Title I teachers did not have a signed certification of time on file to support payroll costs charges to the Federal program. Cause: The District did not have proper procedures in place regarding proper documentation of performance within the grant by the employee. Effect or Potential Effect: The breakdown of internal controls in the area could adversely affect the recording, processing and reporting of financial data. Questioned Costs: None Context: Disbursements were made by the District without proper documentation of participation in the grant by the employee. Repeat Finding: No Recommendation: Policies and procedures should be implemented to either obtain the certification of time or have the employee complete a personal activity report (PAR). Views of responsible officials and planned corrective action: Management is in agreement and will implement a Corrective Action Plan, see pages 61-62 of the current year audit.