Finding 1090585 (2024-004)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2024-12-13

AI Summary

  • Core Issue: The District failed to obtain required semi-annual certifications and personnel activity reports for 15 employees working on Title I grants, leading to improper charges.
  • Impacted Requirements: Non-compliance with OMB and SDE guidelines regarding documentation for federal salaries and wages, including charging employees not listed in Title I plans.
  • Recommended Follow-Up: The District is taking steps to improve procedures to ensure compliance and proper documentation for all employees charged to the Title I program.

Finding Text

CONDITION: For the District’s Title I grants, the District did not properly obtain semi-annual certifications or personnel activity reports supporting the time and effort of 15 employees that worked on this federal program. The District also charged one employee to the program that was not included in the Title I plans and overcharged one employee that should have only been partially funded with Title I. CRITERIA: The District was not fully complying with the Office of Management and Budget (“OMB”) and the South Carolina State Department of Education’s (“SDE”) requirements for proper support for federal salaries and wages for this program. Title I funds should generally only be claimed for employees whose salaries and benefits are included in the Title I plans. CONTEXT, CAUSE, AND EFFECT: 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. These certifications are to be prepared at least semi-annually and will be signed by the employee or the supervisory official having first-hand knowledge of the work performed by the employee. Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports. The District had reasonable supporting documentation for most of the payroll charged to this program, but inadvertently did not complete the time and effort documents as required by the SDE. The District budgeted positions and activities in the Title I program but the actual employees charged to the program were not always communicated to the program director therefore the time and effort documents were not always properly completed. The District’s auditors tested approximately $353,000 in key items related to payroll in the Title I program and noted two exceptions for approximately $87,000 in questioned costs (related to two employees). The District’s auditors tested a random sample of other payroll Title I expenditures and noted two exceptions of approximately $23,000 in questioned costs (related to one of the same employees in our key item testing). The amount of known random questioned costs extrapolated to the remaining random population resulted in potential random questioned costs of approximately $223,000. The key items and random items likely questioned costs related to allowable costs was approximately $310,000 for the Title I program for fiscal year 2024. RECOMMENDATION: The District is implementing procedures to ensure compliance with OMB and SDE requirements and to ensure only employees in the Title I plan are appropriately charged to the program. RESPONSE: The District agrees with this finding and will adhere to the corrective action plan beginning on page 120 in this audit report.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 514137 2024-004
    Material Weakness
  • 514138 2024-004
    Material Weakness
  • 514139 2024-004
    Material Weakness
  • 514140 2024-004
    Material Weakness
  • 514141 2024-004
    Material Weakness
  • 514142 2024-004
    Material Weakness
  • 514143 2024-004
    Material Weakness
  • 514144 2024-004
    Material Weakness
  • 514145 2024-003
    Significant Deficiency
  • 514146 2024-003
    Significant Deficiency
  • 514147 2024-003
    Significant Deficiency
  • 514148 2024-003
    Significant Deficiency
  • 1090579 2024-004
    Material Weakness
  • 1090580 2024-004
    Material Weakness
  • 1090581 2024-004
    Material Weakness
  • 1090582 2024-004
    Material Weakness
  • 1090583 2024-004
    Material Weakness
  • 1090584 2024-004
    Material Weakness
  • 1090586 2024-004
    Material Weakness
  • 1090587 2024-003
    Significant Deficiency
  • 1090588 2024-003
    Significant Deficiency
  • 1090589 2024-003
    Significant Deficiency
  • 1090590 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $1.69M
10.555 National School Lunch Program $206,928
10.582 Fresh Fruit and Vegetable Program $201,407
10.579 Child Nutrition Discretionary Grants Limited Availability $199,608
12.000 Jrotc $65,521
84.048 Career and Technical Education -- Basic Grants to States $55,698
84.425 Covid-19 - Education Stabilization Fund $53,600
84.027 Special Education Grants to States $38,696
84.002 Adult Education - Basic Grants to States $32,338
84.196 Education for Homeless Children and Youth $27,449
84.010 Title I Grants to Local Educational Agencies $26,378
84.173 Covid-19 - Special Education Preschool Grants $20,104
84.365 English Language Acquisition State Grants $13,891
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $10,290
84.027 Covid-19 - Special Education Grants to States $8,484
10.560 State Administrative Expenses for Child Nutrition $6,617
84.173 Special Education Preschool Grants $847
84.424 Student Support and Academic Enrichment Program $126