Audit 388851

2025-002: AL 84.027 / 84.173 Activities Allowed or Unallowed & Allowable Costs / Cost Principles Criteria According to the Uniform Guidance, “An LEA may only use federal funds under IDEA, Part B for the excess costs of providing special education and related services to children with disabilities." Condition Employees sign time and effort certification documents that detail the percentage of their wages that are allocated to specific grants. Cause While the employee’s wages were allocated to the grant correctly, the time and effort certification signed by the employee was not updated to reflect the new allocation percentage. Effect An unallowable payroll cost could be charged to the grant. Questioned Costs None Recommendation Ensure that changes in payroll allocations are communicated properly and certified by the employees working on the federal program. Views of Responsible Officials and Planned Corrective Actions The current process of completing the annual IDEA, Part B budget along with the corresponding time and effort certifications were reviewed by Naomi Obrigewitch and the grant director, Sheri Twist, Director of Student Services. It was realized that an additional step of communication between the director and the grant specialist who processes the time and effort certifications needs to happen at the beginning of the fiscal year when the budget is created. The director will ensure the IDEA, Part B salary breakdown is forwarded to both the grant specialist and the payroll manager. This will ensure the federal grant guidelines are met. Indication of Repeat Finding This is a new finding.