Audit 384048

Criteria Per the compliance supplement for the Title I program, “For an employee who works on multiple activities or cost objectives (e.g., in part on a Federal program whose funds have not been consolidated in a consolidated schoolwide pool and in part on Federal programs supported with funds consolidated in a schoolwide pool or on activities that are not part of the same cost objective), an LEA must maintain time and effort distribution records in accordance with 2 CFR section 200.430(i)(1)(vii) that support the portion of time and effort dedicated to: (i)The Federal program or cost objective; and (ii)Each other program or cost objective supported by consolidated Federal funds or other revenue sources. Condition Solen Public School District No. 3 had substitute teachers filling in positions that were not Title-I funded positions but were paid with Title I funds. Questioned Costs $86,171 Cause The District is subject to size and budget constraints. Time and effort for the substitute teachers was recorded using an estimated percentage of their time towards the Title I grant. However, due to the nature of the substitute teacher position, it would be more appropriate to complete daily logs as the day-to-day duties of a substitute teacher and allowable time spent towards a Title I grant would depend on the position that they would be filling each day. Effect The District had unallowable payroll costs charged to the grant. Recommendation We recommend the District track the time and effort of substitute teachers using daily logs. Views of Responsible Officials and Planned Corrective Actions This finding was resolved in FY2025 through a joint agreement between the District and NDDPI. The questioned costs of $86,171, that were discovered during a separate NDDPI monitoring process, were all returned to the state before the beginning of the 2025 audit. This issue is resolved. Indication of Repeat Finding This is a new finding in the current year.