Finding Text
Assistance Listing, Federal Agency, and Program Name - 84.010, U.S. Department of Education, Title I, Part A
Federal Award Identification Number and Year - 241530
Pass through Entity - Michigan Department of Education
Finding Type - Significant deficiency
Repeat Finding - No
Criteria - The Academy is required to maintain documentation that salaries and wages charged to a federal grant are supported with documentation that the time and effort of the employee was made under the cost objectives of the grant. This takes the form of either semiannual certifications for employees that work solely on the cost objective of a single federal grant or time and effort distribution records if the employee works on more than one cost objective.
Condition - Of the thirty seven employees charged to the grant, two employees did not have semiannual certifications available. The Academy was able to provide alternative support for the allowability of these costs through review of the activities performed as compared to activities included in the approved grant budget.
Questioned Costs - None
Context - Two employees out of thirty seven employees charged to the grant did not have a semiannual certification. The Academy was able to provide alternative support for the allowability of the costs.
Cause and Effect - Not maintaining and reviewing time and effort documentation could result in costs being charged to a grant that were not allowable.
Recommendation - We recommend that the semiannual certification forms are filled out by the individuals who work on a single federally funded cost objective or personnel activity reports by employees that work on multiple cost objectives, and that these forms are reviewed the grant coordinator and reconciled to the underlying accounting records to ensure proper compliance with grant terms and Academy timekeeping policies.
Views of Responsible Officials and Planned Corrective Actions - The Academy agrees with the recommendation and intends to implement the related procedures.