Audit 376118

Finding 2025-002: Significant Deficiency - Time and Effort Documentation Assistance Listing Number, Federal Agency, and Program Name - 84.010, U.S. Department of Education, Title I, Part A Grants to Local Educational Agencies (LEAs) Federal Award Identification Number – 241530-2324 & 251530-2425 Pass-through Entity - Michigan Department of Education Finding Type - Significant deficiency Repeat Finding - No Criteria - The District is required to maintain documentation that salaries and wages charged to a federal grant are supported by documentation of the time and effort of an employee under the cost objectives of the grant. This takes the form of either semiannual certifications for employees that work solely on the cost objective of a single federal grant or time and effort distribution records if the employee works on more than one cost objective. Condition – None of the District’s employees that were tested had semiannual or personnel activity reports prepared. The District was able to provide alternative support for the allowability of these costs through review of the activities performed as compared to activities included in the approved grant budget. Questioned Costs - None Context – During testing, it was noted that the selected District’s employees charged to the grant did not have a semiannual certification or personnel activity reports prepared. The District was able to provide alternative support for the allowability of the costs. Cause and Effect - Not maintaining and reviewing time and effort documentation could result in costs being charged to a grant that were not allowable. Recommendation - We recommend that the semiannual certification forms be completed by individuals who work on a single federally funded cost objective or personnel activity reports by employees who work on multiple cost objectives be completed, and that these forms be reviewed by the grant coordinator and reconciled to the underlying accounting records to ensure proper compliance with grant terms and the District’s timekeeping policies. Views of Responsible Officials and Planned Corrective Actions - The District agrees with the recommendation and intends to implement the related procedures.