Finding Text
Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance
Criteria: In accordance with 2 CFR section 200.430, the local education agency is required to maintain
time and effort distribution records for employees who work on federal programs. These distribution records
must support the portion of time and effort dedicated to: 1) The federal program or cost objective; and 2)
Other programs or cost objectives supported by federal funds or other revenue sources.
Statement of Condition: The District was not in compliance with the Uniform Guidance as it was noted that
management of the District was not preparing time and effort distribution records and could not produce
source documentation to support the time and effort applied to payroll expense that was charged to Title I
Grants to Local Education Agencies.
Cause: The District’s internal controls to identify and document employees that require support for time
and effort charged to Title I Grants to Local Education Agencies were not effective for the year ended June
30, 2024.
Context: We selected payroll costs associated with nine employees who had wages charged to Title I
Grants to Local Education Agencies. Of the nine employees selected for testing, two employees did not
have time and effort documentation or other source documentation to support the payroll expense that was
charged to the federal program.
Effect or Potential Effect: Salary and wage costs could be applied to Title I Grants to Local Education
Agencies without appropriate supporting documentation required in accordance with 2 CFR Part 200.430
and District Policy.
Questioned Costs: $26,366 of known questioned costs charged to this federal program in the year under
audit.
Recommendations: We recommend the District review their internal controls to strengthen processes and
improve procedures. We recommend the District complete all required time and effort certifications in a
timely manner.
Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding and
recommendation and plans to implement a system of completing necessary time and effort documentation
for all employees who work on federal programs.