Finding 1136345 (2024-003)

SIGNIFICANT DEFICIENCY 2024-003 TIME & EFFORT REPORTS Federal Agency: Department of Education Federal Program or Cluster: Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers and Years 70907 - June 24, 2022 - September 30, 2024 Questioned Costs $0 Condition: The Organization lacked the required support to show that the hours billed by program employees were allocated in accordance with actual time spent rather than predetermined budgets. Criteria: A complete system of internal controls requires all expenditures be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal program are required to be allowable costs under the program and allocated in accordance with the Organization's approved budget. Cause: The Organization was not aware that time studies or time and effort reports to capture actual time spent on program activities were necessary. Effect: Payroll expenses unrelated to the federal grant may be paid and charged to the federal program or charged to the incorrect grant. Recommendation: We recommend that the Organization conduct time studies to provide support for the time allocated to each grant. Identification of repeat findings: This finding is not a repeat finding. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop a policy and procedure for documenting time and effort for all employees funded under a federal grant that aligns with Uniform Guidance requirements by July 2025.