Finding 1094463 (2024-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-01-07
Audit: 336357
Auditor: Nigro & Nigro PC

AI Summary

  • Core Issue: Missing time and effort documentation for employees charged to federal programs, leading to potential reclassification of expenditures.
  • Impacted Requirements: Time and effort records must accurately reflect work performed, be signed timely, and comply with internal controls.
  • Recommended Follow-Up: Update policies to ensure all salary charges to federal programs are properly documented and monitored monthly.

Finding Text

Finding 2024-001: Time and Effort Requirements (50000) Repeat Finding? No Assistance Listing No. 84.010 – Title I, Part A Assistance Listing No. 84.425 – Education Stabilization Funds (ESSER) U.S. Department of Education Passed through California Department of Education Criteria: To support salaries and wages for employees that work on federal programs, local educational agencies (LEAs) are required to maintain time and effort records that accurately reflect the work performed. These time and effort records must: (1) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (2) be incorporated into the official records of the LEA; (3) reasonably reflect the total activity for which the employee is compensated by the LEA, not exceeding 100% of compensated activities; (4) encompass both federally assisted and all other activities compensated by the LEA on an integrated basis, but may include the use of subsidiary records as defined in the LEA’s written policy; (5) comply with the established accounting policies and practices of the LEA; and (6) support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Budget estimates or percentages determined before the services are performed alone do not qualify as support for charges to Federal awards. Condition: Time accounting documentation could not be located for certain employees whose salaries were charged to federal programs. Four other employees' time accounting documentation was not signed until the date of the audit, well after the close of the fiscal year in which they were accounted for. Cause: The District did not have adequate oversight to ensure that sufficient time and effort procedures were supported by documentation. Effect: The District could be required to reclassify expenditures from Title I funds and ESSER III funds to an unrestricted funding source. Questioned Costs: The District did not provide documentation for $354,548.97 charged to Title I and ESSER programs. Context: We sampled 3 out of a total of 28 employees charged to Title I funds. Two of those 3 who were sampled were missing time accounting documentation, and their total salaries were $167,858.84. We sampled 11 out of a total of 101 employees charged to ESSER III funds. Three of those 11 who were sampled were missing time accounting documentation, and their total salaries were $186,690.13. Recommendation: The District must update its time and effort records and policies and procedures to ensure that all salaries and wages charged to federal programs are properly supported by a system on internal controls. Specifically, the time and effort records must accurately reflect the work performed and encompass all activities of the employee, both federal and non-federal, and be signed in a timely manner. Views of Responsible Officials: Managers of each employee group have been notified of the importance of completing the time and effort requirements. Managers with the support of the admin/department secretaries are now tasked with monitoring, reconciling and ensuring that these documents are completed and submitted on a monthly basis.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 518015 2024-001
    Significant Deficiency
  • 518016 2024-001
    Significant Deficiency
  • 518017 2024-001
    Significant Deficiency
  • 518018 2024-001
    Significant Deficiency
  • 518019 2024-001
    Significant Deficiency
  • 518020 2024-001
    Significant Deficiency
  • 518021 2024-001
    Significant Deficiency
  • 518022 2024-001
    Significant Deficiency
  • 518023 2024-001
    Significant Deficiency
  • 1094457 2024-001
    Significant Deficiency
  • 1094458 2024-001
    Significant Deficiency
  • 1094459 2024-001
    Significant Deficiency
  • 1094460 2024-001
    Significant Deficiency
  • 1094461 2024-001
    Significant Deficiency
  • 1094462 2024-001
    Significant Deficiency
  • 1094464 2024-001
    Significant Deficiency
  • 1094465 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $1.14M
84.287 Twenty-First Century Community Learning Centers $825,086
84.365 English Language Acquisition State Grants $739,506
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $669,570
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $452,122
84.048 Career and Technical Education -- Basic Grants to States $378,117
84.010 Title I Grants to Local Educational Agencies $293,757
84.424 Student Support and Academic Enrichment Program $281,619
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $276,876
84.027 Special Education Grants to States $252,498
84.002 Adult Education - Basic Grants to States $201,563
10.555 National School Lunch Program $104,606
12.357 Rotc Language and Culture Training Grants $97,582
10.579 Child Nutrition Discretionary Grants Limited Availability $84,415
93.575 Child Care and Development Block Grant $82,497
10.558 Child and Adult Care Food Program $23,798
84.011 Migrant Education State Grant Program $14,718
84.425 Education Stabilization Fund $34