Finding 1094189 (2024-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-01-06
Audit: 335870
Organization: Hannibal School District No. 60 (MO)
Auditor: Wade Stables PC

AI Summary

  • Core Issue: All Title I semi-annual certifications were signed at the beginning of the period instead of after, violating compliance requirements.
  • Impacted Requirements: This affects the Allowable Costs compliance requirement, as it raises doubts about the eligibility of reported Title I expenditures.
  • Recommended Follow-up: Implement stronger oversight by assigning a review point person, setting deadlines for certifications, and providing training to ensure timely completion and compliance.

Finding Text

Findings and Questioned Costs – Major Federal Award Programs Audit Federal Agency: U.S. Department of Education Passthrough Entity: Missouri Department of Elementary and Secondary Education Assistance Listing Number and Federal Program: 84.010 Title I Grants to Local Educational Agencies Compliance Requirement: B. Allowable Costs Criteria: Per 2 CFR 200.430(g)(1)(i), the District is required to have records that are supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The District uses semi-annual certifications to determine if the salaries and/or employee benefits of its employees are allowable for the grant. These certifications are to be signed after each semi-annual period by the teacher and the Title I program director. These certifications show that the teachers’ time was spent under the Title I program, and their salaries and benefits are allowable for the Title I program. Condition: During the course of our audit, we reviewed semi-annual certifications for all Title I teachers, as required. These certifications are used to verify that the employee spent one hundred percent of their time working in the Title I program. Per requirements, these certifications should be signed at the end of the applicable period as that is when the actual time spent in the program is known. However, during our review, we noted that all the certifications were signed at the beginning of the applicable semi-annual period. Cause: There is a lack of oversight in this area. Supervisors should ensure the teachers complete the semi-annual certifications in a timely manner after the end of each semi-annual period. Also, program directors should be reviewing the signed certifications to ensure all program requirements are followed to avoid any noncompliance issues and consequences. Effect: Semi-annual certifications are listed under the Allowable Costs/Cost Principles compliance requirement. In order to apply expenditures to the Title I Program, the employees need to certify that they are spending all of their time on that program. Without this certification, it is not clear that the amounts reported as Title I expenditures are indeed eligible expenditures. Questioned Costs: No questioned costs noted. Perspective Information: This appears to be a systemic problem since all Title I semi-annual certifications for the fiscal year 2024 were reviewed and all certifications were filled out at the beginning of each semi-annual period instead of subsequent to the period. Identification of Repeat Findings: Not a repeat finding. Recommendation: We recommend that the District employ stronger oversight in this area by assigning a review to the Title Program Director or equivalent. Once the certifications are signed by a supervisor, they should be forwarded to this point person for their review and signature. The certifications should be reviewed to ensure each Title teacher is completing a semi-annual certification and that it is being signed by the supervisor. These certifications should also have a due date twice a year to ensure they are done timely and are not overlooked. These should be added to the review checklist already used for Title I reporting. Views of Responsible Officials: The District will set up automated reminders through the internal tracking system with specific deadlines to ensure that all certifications are completed and signed no later than 30 business days after the end of the applicable periods. Regular checks will be conducted by the Title 1 Coordinator to verify that all certifications are completed and signed within the required timeframes. All relevant staff members will undergo training on the new procedures, and will be assigned roles and responsibilities for monitoring and submitting the certifications. See Corrective Action Plan.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 517742 2024-002
    Significant Deficiency
  • 517743 2024-002
    Significant Deficiency
  • 517744 2024-002
    Significant Deficiency
  • 517745 2024-002
    Significant Deficiency
  • 517746 2024-002
    Significant Deficiency
  • 517747 2024-001
    Significant Deficiency
  • 1094184 2024-002
    Significant Deficiency
  • 1094185 2024-002
    Significant Deficiency
  • 1094186 2024-002
    Significant Deficiency
  • 1094187 2024-002
    Significant Deficiency
  • 1094188 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $959,247
84.010 Title I Grants to Local Educational Agencies $825,951
10.553 School Breakfast Program $383,746
10.555 National School Lunch Program $211,339
84.425 Education Stabilization Fund $190,922
84.048 Career and Technical Education -- Basic Grants to States $167,090
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $131,529
32.009 Emergency Connectivity Fund Program $121,766
84.424 Student Support and Academic Enrichment Program $62,646
10.559 Summer Food Service Program for Children $34,201
84.173 Special Education Preschool Grants $22,859
93.434 Every Student Succeeds Act/preschool Development Grants $15,399
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $15,000