FAC Explorer

Finding 1115512 (2024-010)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2025-03-28
Audit: 349776
Organization: City of Boston (MA)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: BPS lacks sufficient internal controls over payroll documentation, leading to unsupported payroll charges.
  • Impacted Requirements: Noncompliance with 2 CFR 200.430(i)(1) regarding accurate documentation for salaries and wages.
  • Recommended Follow-Up: BPS should enhance policies for payroll documentation and consider implementing electronic timesheets for better tracking.

Finding Text

Finding number: 2024-010 Federal agency: U.S. Department of Education Pass-through agency: Commonwealth Department of Elementary and Secondary Education Program: Special Education (IDEA) Cluster ALN #: 84.027; 84.173 Award number: 240-714716-2023-0035; 0240-000558-2024-0035 Award year: October 3, 2022 to September 30, 2024; October 2, 2023 to September 30, 2025 Finding: Internal Control and Compliance over Payroll Costs Prior Year Finding: Yes; 2023-011 Type of Finding: Significant Deficiency and Noncompliance Criteria In accordance with 2 CFR 200.430(i)(1), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) Encompass both Federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity; and (vi) 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. Additionally, 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that thenon-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition During our testing of allowable costs associated with payroll charges, we noted that the City of Boston Public Schools (BPS) documents time and attendance of employees on daily timesheets signed by the employee, and that these timesheets are approved by the Department Head/Supervisor on a Department Time Summary Report (DTSR). However, for our sample of 60 payroll transactions charged to the program, 4 DTSR’s were not approved. Additionally, although the DTSR was approved, the transactions were not supported by a completed timesheet for an additional 3 selections. Cause This appears to be due to an insufficient system for collecting, filing and maintaining supporting documentation for payroll transactions charged to Federal programs. Effect Insufficient review of payroll documentation increases the risk of inaccurate payroll costs being allocated to a grant award. Additionally, BPS is not in compliance with 2 CFR 200.430(i)(1) regarding documentation in support of salaries and wages charge to the federal program. Whether Sampling was Statistically Valid The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: Questioned costs of $13,149, for unsupported payroll charges Recommendation We recommend that BPS re-enforce its policies and procedures to ensure their review of payroll charges and records are retained and documented to ensure that all payroll costs charged to the federal program are supported by documentation as required by 2 CFR 200.430(i)(1). View of Responsible Officials from the Auditee BPS will add additional guidance around timesheet retention to the trainings for new timekeepers and at the annual payroll training held every August. Additionally, BPS is exploring electronic timesheets, with a pilot focusing on staff that work at multiple sites.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 539061 2024-003
    Significant Deficiency Repeat
  • 539062 2024-004
    Significant Deficiency
  • 539063 2024-005
    Significant Deficiency
  • 539064 2024-006
    Significant Deficiency Repeat
  • 539065 2024-007
    Significant Deficiency Repeat
  • 539066 2024-008
    Significant Deficiency Repeat
  • 539067 2024-009
    Significant Deficiency Repeat
  • 539068 2024-009
    Significant Deficiency Repeat
  • 539069 2024-009
    Significant Deficiency Repeat
  • 539070 2024-010
    Significant Deficiency Repeat
  • 539071 2024-010
    Significant Deficiency Repeat
  • 539072 2024-011
    Material Weakness
  • 539073 2024-012
    Significant Deficiency Repeat
  • 1115503 2024-003
    Significant Deficiency Repeat
  • 1115504 2024-004
    Significant Deficiency
  • 1115505 2024-005
    Significant Deficiency
  • 1115506 2024-006
    Significant Deficiency Repeat
  • 1115507 2024-007
    Significant Deficiency Repeat
  • 1115508 2024-008
    Significant Deficiency Repeat
  • 1115509 2024-009
    Significant Deficiency Repeat
  • 1115510 2024-009
    Significant Deficiency Repeat
  • 1115511 2024-009
    Significant Deficiency Repeat
  • 1115513 2024-010
    Significant Deficiency Repeat
  • 1115514 2024-011
    Material Weakness
  • 1115515 2024-012
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $203.78M
84.010 Title I Grants to Local Educational Agencies $58.87M
14.267 Continuum of Care Program $40.38M
10.555 National School Lunch Program $30.91M
84.027 Special Education Grants to States $17.94M
97.067 Homeland Security Grant Program $13.81M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $9.97M
14.239 Home Investment Partnerships Program $5.87M
21.023 Emergency Rental Assistance Program $4.73M
84.173 Special Education Preschool Grants $3.24M
84.424 Student Support and Academic Enrichment Program $3.12M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $3.00M
14.231 Emergency Solutions Grant Program $2.77M
84.048 Career and Technical Education -- Basic Grants to States $2.24M
84.365 English Language Acquisition State Grants $1.94M
10.558 Child and Adult Care Food Program $1.93M
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $1.89M
66.443 Reducing Lead in Drinking Water (sdwa 1459b) $1.48M
97.106 Securing the Cities Program $1.28M
14.905 Lead Hazard Reduction Demonstration Grant Program $1.11M
10.582 Fresh Fruit and Vegetable Program $1.09M
14.248 Community Development Block Grants Section 108 Loan Guarantees $919,562
10.559 Summer Food Service Program for Children $883,164
20.500 Federal Transit Capital Investment Grants $815,500
16.833 National Sexual Assault Kit Initiative $777,046
84.287 Twenty-First Century Community Learning Centers $748,658
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $737,136
84.184 School Safely National Activities $731,838
97.111 Regional Catastrophic Preparedness Grant Program (rcpgp) $711,470
93.493 Congressional Directives $680,072
93.053 Nutrition Services Incentive Program $593,356
97.024 Emergency Food and Shelter National Board Program $556,657
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $526,196
20.616 National Priority Safety Programs $496,691
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $425,792
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $402,254
93.052 National Family Caregiver Support, Title Iii, Part E $398,440
97.044 Assistance to Firefighters Grant $393,945
21.027 Coronavirus State and Local Fiscal Recovery Funds $353,549
94.016 Americorps Seniors Senior Companion Program (scp) 94.016 $329,650
16.738 Edward Byrne Memorial Justice Assistance Grant Program $302,301
20.219 Recreational Trails Program $300,000
97.047 Bric: Building Resilient Infrastructure and Communities $294,366
84.002 Adult Education - Basic Grants to States $276,923
16.741 Dna Backlog Reduction Program $254,896
84.336 Teacher Quality Partnership Grants $222,942
16.015 Missing Alzheimer's Disease Patient Assistance Program $142,079
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $134,183
10.935 Urban Agriculture and Innovative Production $132,138
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $131,056
14.401 Fair Housing Assistance Program $119,749
84.196 Education for Homeless Children and Youth $106,059
16.588 Violence Against Women Formula Grants $104,318
14.241 Housing Opportunities for Persons with Aids $99,539
45.301 Museums for America $93,526
97.042 Emergency Management Performance Grants $91,427
32.001 Communications Information and Assistance and Investigation of Complaints $77,625
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $73,828
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $68,165
10.331 Gus Schumacher Nutrition Incentive Program $65,759
14.889 Choice Neighborhoods Implementation Grants $59,681
10.579 Child Nutrition Discretionary Grants Limited Availability $59,354
97.056 Port Security Grant Program $42,469
10.575 Farm to School Grant Program $37,410
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $35,915
14.246 Community Development Block Grants/brownfields Economic Development Initiative $28,049
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $27,991
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $25,980
15.904 Historic Preservation Fund Grants-in-Aid $11,270
16.710 Public Safety Partnership and Community Policing Grants $10,945
16.820 Postconviction Testing of Dna Evidence $9,290
14.218 Community Development Block Grants/entitlement Grants $2,146
14.261 National Homeless Data Analysis Project (nhdap) $1,750
10.727 Inflation Reduction Act Urban & Community Forestry Program $1,232
17.259 Wioa Youth Activities $1,145
11.307 Economic Adjustment Assistance $949
17.285 Registered Apprenticeship $582
17.258 Wioa Adult Program $214
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $182
17.289 Community Project Funding/congressionally Directed Spending $107
17.278 Wioa Dislocated Worker Formula Grants $101
17.207 Employment Service/wagner-Peyser Funded Activities $67