Finding 1118434 (2024-001)

2024-001. Allowable Costs/Cost Principles: Compensation – Personal Services United States Department of Education, Passed Through New York State, Department of Education: Twenty-First Century Community Learning Centers ALN: 84.287 Criteria: Salaries and wages charged to federal awards must be supported by documentation prescribed by the Uniform Guidance at Subpart E, 2 CFR §200.430. Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee's compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PARs) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District prepared periodic certification equivalents, but it did not comply with Subpart E, 2 CFR §200.430. Cause: The individual that was responsible for coordinating the program did not complete time and effort records, as described in Subpart E, 2 CFR §200.430, to support salaries charged to federal awards. Effect: Noncompliance could result in the incorrect amount for services rendered being charged to the federal award. Questioned Costs: None reported. Context: Time records for the balance of employees audited in our sample of 25, who were charged to federal awards by the District, were supportive of amounts included in budgets approved by the State and included in the Final Expenditure Report. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should monitor its procedures to ascertain that documentation to support salaries and wages charged to federal awards is in a format that complies with the requirements of the Uniform Guidance at Subpart E, 2 CFR §200.430. Views of Responsible Officials of Auditee: The District agrees with the finding. Peter Daly, Interim School Business Administrator, will oversee the monitoring of procedures to ensure appropriate documentation will be prepared to comply with Subpart E, 2 CFR §200.430.