2022-001 - Allowable Cost/Cost Principal Federal Program Information: 84.425D Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1)(vii). Condition: During audit procedures, it was identified that the District was not completing the semi-annual time certifications/periodic time certifications properly and create one semi-annual time certification/periodic time certifications to cover 12 months. Cause: The District does not have the necessary internal controls over compliance. Effect: Expenses may not be properly allocated to the grant; this could result in unallowable expenses being charged and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: All signed time certifications were reviewed in conjunction with a test of 25 employees across two payroll periods. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implement internal control processes and procedures to ensure that time and effort records for employees working are proper documented in accordance with the grant requirements. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Orleans Central Supervisory Union.
2022-001 - Allowable Cost/Cost Principal Federal Program Information: 84.425D Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1)(vii). Condition: During audit procedures, it was identified that the District was not completing the semi-annual time certifications/periodic time certifications properly and create one semi-annual time certification/periodic time certifications to cover 12 months. Cause: The District does not have the necessary internal controls over compliance. Effect: Expenses may not be properly allocated to the grant; this could result in unallowable expenses being charged and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: All signed time certifications were reviewed in conjunction with a test of 25 employees across two payroll periods. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implement internal control processes and procedures to ensure that time and effort records for employees working are proper documented in accordance with the grant requirements. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Orleans Central Supervisory Union.
Federal Agency: Department of Justice Federal Program Name: Crime Victim Services 2022 Assistance Listing Number: 16.575 Pass-Through Agency: Minnesota Office of Justice Programs Pass-Through Numbers: A-CVS-2022-WOMADV-021 Award Period: 10/1/2021 ? 9/30/2023 Type of Finding: ? Material Weakness in Internal Control ? Other Matters Criteria: 2 CFR 200 ?200.430 requires that changes to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: The Organization did not have a process to review or approve the time and effort of employees charged to the grant. Context: No documentation of time and effort approval was kept the full fiscal year. Cause: Internal control procedures were not in place to review and approve time and effort for personnel. Effect: When internal controls are not in place over payroll charges, there is increased risk that payroll allocations may be incorrect. Repeat Finding: No. Recommendation: The Organization should implement internal controls to ensure that time and effort is reviewed on a timely basis. View of Responsible Officials: Management is in agreement with this audit finding.
#2022-004 ? Significant Deficiency ? Allowable Costs Community Service Block Grant, CFDA # 93.569 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, ?Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.? Condition During the course of the audit, it was determined certain compensation payments were incorrectly allocated to a funding source which did not allow for that type of compensation. This administrative error was corrected. Cause The cause is the result of human error. Effect The potential effects of not reconciling contemporaneous time and effort reporting to allocated payroll expenses could include an over or understatement of compensation payments allocated to the federal grant. Questioned Costs Questioned costs amount to $27,727. Perspective Information This finding was consistent for the fiscal year. Identification as a repeat finding There was no single audit requirement in the prior year and therefore, this finding is not reported as a repeated finding. Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of Responsible Official CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred.
#2022-004 ? Significant Deficiency ? Allowable Costs Community Service Block Grant, CFDA # 93.569 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, ?Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.? Condition During the course of the audit, it was determined certain compensation payments were incorrectly allocated to a funding source which did not allow for that type of compensation. This administrative error was corrected. Cause The cause is the result of human error. Effect The potential effects of not reconciling contemporaneous time and effort reporting to allocated payroll expenses could include an over or understatement of compensation payments allocated to the federal grant. Questioned Costs Questioned costs amount to $27,727. Perspective Information This finding was consistent for the fiscal year. Identification as a repeat finding There was no single audit requirement in the prior year and therefore, this finding is not reported as a repeated finding. Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of Responsible Official CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred.
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
FINDING 2022-004 Subject: Title I Grants to Local Educational Agencies - Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listings Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A190014, S010A200014, S010A210014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principles Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not developed at the School Corporation to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Cost Principles compliance requirement. The School Corporation approved a salary schedule for bus drivers which included additional compensation based on miles driven for bus drivers who transported preschool students. Each pay period, the Director of Transportation calculated a bus driver's daily pay by adding the approved hourly wage rate times hours worked to the per mile rate times miles driven for the preschool route, if applicable. The School Corporation provided approved timesheets for the bus drivers selected for testing; however, the calculation of the daily pay calculation was not provided for audit. The bus drivers' payroll of $113,486 charged to the Title I grants during the audit period were considered questioned costs. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.403 states in part: "Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: . . . (g) Be adequately documented. . . ." 2 CFR 200.430(i) states in part: "Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); . . . (vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. . . ." Cause Management had not established a system of internal controls that would have ensured compliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs Known questioned costs were $113,486 as identified in the Condition and Context. Recommendation We recommended that the School Corporation's management establish a system of internal controls to ensure compliance and comply with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-004 Subject: Title I Grants to Local Educational Agencies - Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listings Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A190014, S010A200014, S010A210014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principles Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not developed at the School Corporation to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Cost Principles compliance requirement. The School Corporation approved a salary schedule for bus drivers which included additional compensation based on miles driven for bus drivers who transported preschool students. Each pay period, the Director of Transportation calculated a bus driver's daily pay by adding the approved hourly wage rate times hours worked to the per mile rate times miles driven for the preschool route, if applicable. The School Corporation provided approved timesheets for the bus drivers selected for testing; however, the calculation of the daily pay calculation was not provided for audit. The bus drivers' payroll of $113,486 charged to the Title I grants during the audit period were considered questioned costs. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.403 states in part: "Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: . . . (g) Be adequately documented. . . ." 2 CFR 200.430(i) states in part: "Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); . . . (vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. . . ." Cause Management had not established a system of internal controls that would have ensured compliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs Known questioned costs were $113,486 as identified in the Condition and Context. Recommendation We recommended that the School Corporation's management establish a system of internal controls to ensure compliance and comply with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Criteria: Per federal regulation 2 CFR section 200.430(i)(1)(vii), the School District must maintain time and effort records for employees who work, all or in part, under federal grants. Condition: The semi-annual certification provided by an employee was not complete and was signed prior to the end of the period worked, as listed on the document. Cause: The School District was not aware of the required detail. Effect: The School District was not in compliance with all of the components of the requirements. Recommendation: We recommend that the School District ensure that all required timesheets include the related employee data and clearly identify the time segregated between federal and non-federal funding. Certification statements should be properly signed and dated and accurately reflect the time period worked. Management?s Response: Management agrees with this finding.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Finding 2022-001: Time and Effort Reporting 84.027, 84.173 - Special Education Cluster Passed Through the New York State Education Department DEPARTMENT OF EDUCATION Condition/Criteria : Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context : A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause : The District does not currently have records that support time and effort for teachers under the grant. Effect: The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Management Response: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his/her FTE funded, and the grant source. This statement is also signed by his or her supervisor.
2022-002: Activities Allowed or Unallowed and Allowable Costs/Cost Principles: , No Time Studies, Proper Time Tracking, Time Allocation, and Time Reporting (Significant Deficiency) Federal program information: Funding agency: U.S. Department of Human Health and Services Title: HIV Emergency Relief Formula Grant ALN: 93.914 Funding agency: U.S. Department of Housing and Urban Development Title: Housing Opportunities for Persons With AIDS ALN: 14.241 Criteria: According to 2 CFR ?225, Appendix B, charges to federal awards for salaries and wages should be based on payrolls documented in accordance with generally accepted practices within the Organization and approved by a responsible official of the Organization. Further, charges for salaries and wages will be signed by the employee and supervisory official having firsthand knowledge of the work performed by the employee. Additionally, in accordance with 2 CFR 200.430(i)(1), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass both Federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non- Federal entity?s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; and VI. Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: We noted that PRC did not have controls in place to ensure that all payroll expenditures were properly supported per PRC?s policies and procedures. ? HIV Emergency Relief Formula Grant (ALN 93.914) - As per PRC's internal procedure manual, time sheets should be updated by both salaried and hourly employees; however, time cards for 22 samples could not be located. ? Housing Opportunities for Persons With AIDS (ALN 14.241) - For payroll samples selected for testing, we were unable to determine how payroll was tracked and charged for all of the employees who provide direct services related to this program. Cause: PRC did not follow its policies and procedures regarding the retention of payroll supporting documentation. Effect: Payroll related charges to the program are not supported. PRC is not in compliance with 2 CFR 200.430(i)(1) regarding documentation in support of salaries and wages charge to the federal program. Questioned Costs: Questioned costs were not determinable. Repeat finding: No Recommendation: We recommend that PRC implement control procedures to ensure that all payroll costs charged to the federal program are supported by documentation as required by 2 CFR 200.430(i)(1). Further, we recommend PRC to conduct and document semi-annual time studies to ensure that all staff time is allocated properly across all contracts and funding sources.
2022-002: Activities Allowed or Unallowed and Allowable Costs/Cost Principles: , No Time Studies, Proper Time Tracking, Time Allocation, and Time Reporting (Significant Deficiency) Federal program information: Funding agency: U.S. Department of Human Health and Services Title: HIV Emergency Relief Formula Grant ALN: 93.914 Funding agency: U.S. Department of Housing and Urban Development Title: Housing Opportunities for Persons With AIDS ALN: 14.241 Criteria: According to 2 CFR ?225, Appendix B, charges to federal awards for salaries and wages should be based on payrolls documented in accordance with generally accepted practices within the Organization and approved by a responsible official of the Organization. Further, charges for salaries and wages will be signed by the employee and supervisory official having firsthand knowledge of the work performed by the employee. Additionally, in accordance with 2 CFR 200.430(i)(1), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass both Federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non- Federal entity?s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; and VI. Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: We noted that PRC did not have controls in place to ensure that all payroll expenditures were properly supported per PRC?s policies and procedures. ? HIV Emergency Relief Formula Grant (ALN 93.914) - As per PRC's internal procedure manual, time sheets should be updated by both salaried and hourly employees; however, time cards for 22 samples could not be located. ? Housing Opportunities for Persons With AIDS (ALN 14.241) - For payroll samples selected for testing, we were unable to determine how payroll was tracked and charged for all of the employees who provide direct services related to this program. Cause: PRC did not follow its policies and procedures regarding the retention of payroll supporting documentation. Effect: Payroll related charges to the program are not supported. PRC is not in compliance with 2 CFR 200.430(i)(1) regarding documentation in support of salaries and wages charge to the federal program. Questioned Costs: Questioned costs were not determinable. Repeat finding: No Recommendation: We recommend that PRC implement control procedures to ensure that all payroll costs charged to the federal program are supported by documentation as required by 2 CFR 200.430(i)(1). Further, we recommend PRC to conduct and document semi-annual time studies to ensure that all staff time is allocated properly across all contracts and funding sources.
Finding 2022-001: Time and Effort Reporting 84.027, 84.173 - Special Education Cluster Passed Through the New York State Education Department DEPARTMENT OF EDUCATION Condition/Criteria : Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context : A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause : The District does not currently have records that support time and effort for teachers under the grant. Effect: The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Management Response: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his/her FTE funded, and the grant source. This statement is also signed by his or her supervisor.
Finding 2022-001: Time and Effort Reporting 84.027, 84.173 - Special Education Cluster Passed Through the New York State Education Department DEPARTMENT OF EDUCATION Condition/Criteria : Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context : A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause : The District does not currently have records that support time and effort for teachers under the grant. Effect: The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Management Response: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his/her FTE funded, and the grant source. This statement is also signed by his or her supervisor.
FINDING 2022-003 INADEQUATE SUPPORT FOR SALARIES AND WAGES- TIME CERTIFICATIONS NOT MAINTAINED (50000) Federal Agency: U.S. Department of Education Pass through Entity: California Department of Education Program Names: Elementary and Secondary School Emergency Relief I, II, III (ESSER, ESSER II, ESSER III) (Assistance Listing 84.425, D, U). Title I (Assistance Listing 84.010) Criteria: 2 CFR 200.430 requires that an LEA must maintain time and effort distribution records that support the distribution of the employee?s salary or wages among specific activities or cost objectives. 2CFR, section 225, appendix B, Section 8(h) states in part: Support of salaries and wages?These standards regarding time distribution are in addition to the standards for payroll documentation. (1) Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, will be based on payrolls documented in accordance with generally accepted practice of the governmental unit and approved by a responsible official(s) of the governmental unit. (2) No further documentation is required for salaries and wages of employees who work in a single indirect cost activity. (3) Where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employee worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. CSAM Procedure 905 states, in part: Periodic (Semiannual)Certification Employees who work solely on a single federal award or cost objective need only complete a periodic certification. The periodic certification must: ? Be prepared at least semiannually. ? Be signed by the employee or the supervisory official having firsthand knowledge of the work performed by the employee. ? State the employee worked solely on that single federal program or cost objective during the period covered by the certification. Where multiple employees work on the same cost objective, a blanket certification may be used as the documentation for all employees who worked on the cost objective?. Personnel Activity Report Except as provided in ?Substitute Systems for Time Accounting,? employees who work on multiple activities or cost objectives of which at least one is federal must complete a personnel activity report (PAR) or equivalent documentation. A PAR may be as detailed as a document that identifies the employee?s activity daily by hours, or it may be as simple as a report of the total hours or percentage of hours spent in each categorical program or cost objective. The level of detail can generally be determined by the diversity and variation of the employee?s work activities. The safest approach is to provide more documentation rather than less. Condition: The District provided approved time sheets for only 3 employees out of 20 selected that were paid from ESSER funding. The District provided 9 of 10 time accounting records that included PARS for Title I. Context/Questioned Cost/Effect: The District did not provide time certification records for 17 of the 20 employees selected for review, who were paid with Education Stabilization Funds. As a result, the amount of $736,116.27 is in question. This finding occurred in the 2021-22 fiscal year and is not a repeat finding. The District did not provide time certification records for 1 of 8 employees selected for review, who was paid with Title I funds, as a result, the amount of $ 91,794 is in question. Cause: The District does not have adequate controls in place to ensure that time certification documentation is prepared and maintained to support all employees who are paid with federal funds. Recommendations: We recommend the District comply with Title 2, CFR 200.303, and CSAM Procedure 905 which require that employee time certification forms be maintained for employees who charge time to federal programs. Views of Responsible Officials: Management will ensure that the District does have adequate controls in place and comply with Federal rules and guidelines.