Audit 349389

Criteria or Specific Requirement Federal regulation 2 CFR §200.430 states that “charges to Federal awards for salaries and wages must comply with the established accounting policies and practices of the non-Federal entity and budget estimates determined before the services are performed alone do not qualify as support for charges to Federal awards.” Entity policy states that “All employees who are paid in full or in part with federal funds, including employees whose salary is paid with state or local funds but is used to meet a required match or in-kind contribution to a federal program, shall document the amount of time they spend on grant activities (AR 3230)”. Condition In our review of employees charged to the Title 1 program we noted that two of the employees Semiannual Certification Form’s were certified before the period was over. Both Semiannual Certification Forms for the period 1/1/2024-6/14/2024 were certified on 2/23/2024. Potential Fiscal Impact $49,153 Cause The Organization’s internal control process over Federal Time Accounting was not properly designed Effect The Organization is out of compliance with 2 CFR §200.430. Context During the 2023-24 fiscal year, the Organization charged 2 employees to the Title 1 program for their salaries or extra duty performed. We reviewed time accounting documentation for both of the employees charged to the program. We identified findings in both of the employees that were reviewed. Repeat Finding No Recommendation Continue to provide training to all employees funded from federal programs and their supervisors to the requirements for federal time accounting under 2 CFR §200.430. Identify an individual responsible to monitor documentation to ensure it meets requirements. Implement a reconciliation between federal time accounting documentation and payroll records to ensure that appropriate adjustments are made to ensure payroll is charged to the correct programs. Views of Responsible Officials See Corrective Action Plan

Criteria or Specific Requirement Federal regulation 2 CFR §200.430 states that “charges to Federal awards for salaries and wages must comply with the established accounting policies and practices of the non-Federal entity and budget estimates determined before the services are performed alone do not qualify as support for charges to Federal awards.” Entity policy states that “All employees who are paid in full or in part with federal funds, including employees whose salary is paid with state or local funds but is used to meet a required match or in-kind contribution to a federal program, shall document the amount of time they spend on grant activities (AR 3230)”. Condition In our review of employees charged to the Title 1 program we noted that two of the employees Semiannual Certification Form’s were certified before the period was over. Both Semiannual Certification Forms for the period 1/1/2024-6/14/2024 were certified on 2/23/2024. Potential Fiscal Impact $49,153 Cause The Organization’s internal control process over Federal Time Accounting was not properly designed Effect The Organization is out of compliance with 2 CFR §200.430. Context During the 2023-24 fiscal year, the Organization charged 2 employees to the Title 1 program for their salaries or extra duty performed. We reviewed time accounting documentation for both of the employees charged to the program. We identified findings in both of the employees that were reviewed. Repeat Finding No Recommendation Continue to provide training to all employees funded from federal programs and their supervisors to the requirements for federal time accounting under 2 CFR §200.430. Identify an individual responsible to monitor documentation to ensure it meets requirements. Implement a reconciliation between federal time accounting documentation and payroll records to ensure that appropriate adjustments are made to ensure payroll is charged to the correct programs. Views of Responsible Officials See Corrective Action Plan