Finding Text
Criteria: The District is required to comply with the requirements of OMB 2 CFR Part 200 Subpart E – Cost Principles related to the allowability, reasonableness, and allocability of costs consistent with the approved budget and also by maintaining required support for salaries and wages. Condition: In our sample of 20 employees, the District was unable to provide signed semi-annual certifications and/or personnel activity reports (PAR) for 13 employees charged in full or in part to federal programs. In addition, we were unable to reconcile employee pay to published salary schedules for 4 of the 20 employees sampled. Effect: The District was not in compliance with the requirement of OMB 2 CFR Part 200 Subpart E - Cost Principles. Cause: The District has indicated that the records were obtained; however, due to changes in personnel and records being moved, the documentation has been misplaced. Recommendation: The District should ensure that it complies annually with the requirements related to the allowability, reasonableness, and allocability of costs consistent with the approved budget and that a record retention policy exists where appropriate support for salaries and wages is retained as required. District response: The District no longer exists due to consolidation. Cost Principles compliance will be practiced in the new district by the appropriate staff.