Finding 1090644 (2024-003)

-
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2024-12-13
Audit: 332409
Auditor: Crowe LLP

AI Summary

  • Core Issue: The District failed to provide necessary documentation for payroll expenses charged to Title I programs.
  • Impacted Requirements: Non-compliance with Uniform Guidance, specifically regarding documentation and internal controls for federal funding.
  • Recommended Follow-Up: Implement robust internal controls to ensure compliance with federal program requirements and establish clear procedures for documentation.

Finding Text

2024-003 – DEFICIENCY – FEDERAL COMPLIANCE (50000) Federal Programs: Title I Programs (AL# 84.010) Criteria: Per the Uniform Guidance Compliance Supplement, established in accordance with 2 CFR Part 200, Subpart F: Sections A. Activities Allowed or Unallowed, and B. Allowable Costs require that costs charged be supported by appropriate documentation, and correctly charged as to account, amount and period. Condition: The District was unable to provide supporting documentation for payroll for two employee charged to the Title I programs. The Uniform Guidance compliance also require internal control procedures to be in place and followed to demonstrate compliance with the requirements. As a result, the District did not have appropriate internal control procedures in place, nor were the expenditures compliant with Uniform Guidance requirements. Effect: The District did not comply with the necessary requirements for maintaining supporting documentation for payroll expenditures charged to the program, therefore resulting in risk of loss of funding for amounts paid. Cause: The District did not follow necessary internal controls for ensuring compliance with the specific program requirements of the Title I Program grant monies it received and expended during the year ended June 30, 2024. Fiscal impact: Known questioned costs are $92,048 and likely questioned costs are $59,941, totaling $151,989. Repeat Finding: No. Recommendation: The District’s management team should implement necessary internal controls to ensure compliance with all Federal program requirements. The internal controls should include (1) a procedure identifying which attributes apply to each Federal program operated by the District, and (2) steps to ensure compliance with each attribute identified as applicable.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $2.04M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $1.36M
84.365 English Language Acquisition State Grants $1.03M
10.555 National School Lunch Program $825,640
84.048 Career and Technical Education -- Basic Grants to States $762,034
84.424 Student Support and Academic Enrichment Program $494,906
84.027 Special Education Grants to States $362,909
84.010 Title I Grants to Local Educational Agencies $314,015
84.002 Adult Education - Basic Grants to States $217,188
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $202,445
10.558 Child and Adult Care Food Program $178,320
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $80,258
10.579 Child Nutrition Discretionary Grants Limited Availability $79,068
84.196 Education for Homeless Children and Youth $56,502
84.425 Education Stabilization Fund $29,023