Finding Text
2024-004 U.S. Department of Education, Assistance Listing #84.027/84.173 Special Education Cluster (IDEA) for the period July 1, 2023 through June 30, 2024
Criteria: Brunswick School Department teachers participate in the MainePERS retirement program. Teacher salaries and benefits, including the employer portion of MainePERS contributions, are charged to the Special Education Cluster (IDEA). Teacher employer contribution rates for the MainePERS retirement system were 4.47% for non-Federally funded teachers, and 19.57% for federally funded teachers during fiscal year 2024. Employees allocated to federal and non-federal activities should have their contributions prorated using the non-Federal and Federal rates based on the percentage of time allocated to each activity.
Condition: We performed a payroll test of two employees charged to the Special Education Cluster (IDEA). One of the two employees tested had an incorrect MainePERS retirement contribution calculation.
Cause: The employee tested was allocated 9% to the Federal grant and 91% to non-Federal activities. The contribution rates were not updated in the payroll system to reflect the correct allocation of Federal and non-Federal rates.
Effect: As a result, the Special Education Cluster (IDEA) grant was overcharged for the employer portion of MainePERS contributions.
Known Questioned Costs: $386
Likely Questioned Costs: $3,205
Recommendation: We recommend all employees charged to both Federal and non-Federal activities be reviewed in the payroll system to ensure the system is calculating the correct Federal and non-Federal rates. We also recommend developing policies to ensure that the correct rates are updated in the system each year and rates are properly applied when employee additions or allocation changes are made.