Finding Text
Criteria: The principles for determining allowability of costs charged to federal grants are outlined in the federal regulations, 2CFR Part 200, Subpart E. Condition: The District recorded 100% of retirement expenditures for employees when the District receives reimbursement from the State for approximately 50% of its retirement expenditures. Cause: The District failed to back out the portion of the retirement expenditures that are reimbursed or subsidized by the State. Effect: The District has received reimbursement via state and federal subsidies for the same retirement expenditures. Context: We calculated the allowable retirement expenditures by multiplying the gross salaries recorded to the federal program(s) by the PSERS employer rate and then deducted 50% for the amount reimbursed by the State and compared that total to the amount of actual retirement expenditures recorded to the federal program(s). Recommendation: We have advised management to resolve the current noncompliance finding by any means necessary that is in compliance with federal regulations. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and will develop procedures to ensure only 50% of retirement expenditures are recorded to federal programs. Audit Follow-Up Procedures: We did not perform any follow-up procedures since there were no findings from the previous year.