Finding 1164881 (2025-005)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2025-12-15

AI Summary

  • Core Issue: The District is not maintaining proper time and effort reporting documentation for employees charged to federal grants, violating 2 CFR 200.430.
  • Impacted Requirements: Personnel compensation must be based on accurate records reflecting work performed, especially for employees working on multiple cost objectives.
  • Recommended Follow-Up: Provide training for staff on documentation requirements and implement oversight procedures for monthly review of personnel activity reports.

Finding Text

ALN 84.027, 84.173, and 84.424 - Special Education Cluster Grants, and Title IV -Grant # 240450, 250450, 250460, 240750, and 250750 - Grants Ending September 30, 2024 and September 30, 2025 Condition and Criteria: 2 CFR 200.430 of the Uniform Guidance mandates that personnel compensation charged to federal awards must be based on records that accurately reflect the work performed. When an employee works on multiple cost objectives (e.g., multiple awards or activities), this often necessitates the use of personnel activity reports or similar timekeeping documents to accurately allocate salaries and wages. During the audit, we found that proper personnel activity reports were not being maintained for multiple cost objective employees charged to Title IV and to the Special Education Cluster. While we were able to support that the amounts charged to the grants were reasonable, through review of the employee’s Outlook calendars, daily schedules, etc., the documentation required by federal guidance was not available. Effect: The District is not consistently maintaining the required time and effort reporting documentation for employees being charged to federal grants as required. Cause: There has been significant turnover in staffing and management at the District, and the requirements regarding time and effort reporting were not understood by the new Grant's Director. Context: The FER and all final trial balances for the fiscal years included in the grant were reviewed and evaluated in total. Only the ESSER I FER included overages over 10%. Questioned Costs: $0 - While we were able to support that the amounts charged to the grants were reasonable, through review of the employee’s Outlook calendars, daily schedules, etc., the documentation required by federal guidance was not available. Auditors' Recommendation: We recommend that management provide training to all multiple cost objective employees on how to properly document their time and then to implement oversite procedures requiring that those personnel activity reports be submitted to management for review on a monthly basis. Views of Responsible Officials and Planned Corrective Actions: The District understands the situation and will ensure that all proper time and effort reporting documentation is maintained moving forward. Please see the attached Corrective Action Plan prepared by the District.

Corrective Action Plan

Improper Time & Effort Reporting Condition: 2 CFR 200.430 of the Uniform Guidance mandates that personnel compensation charged to federal awards must be based on records that accurately reflect the work performed. When an employee works on multiple cost objectives (e.g., multiple awards or activities), this often necessitates the use of personnel activity reports or similar timekeeping documents to accurately allocate salaries and wages. During the audit, we found that proper personnel activity reports were not being maintained for multiple cost objective employees charged to Title IV and to the Special Education Cluster. While we were able to support that the amounts charged to the grants were reasonable, through review of the employee's Outlook calendars, daily schedules, etc., the documentation required by federal guidance was not available. We recommend that management provide training to all multiple cost objective employees on how to properly document their time and then to Implement oversite procedures requiring that those personnel activity reports be submitted to management for review on a monthly basis. Corrective Action: The District has begun training all staff and grant Directors on the proper documentation required to properly support the time and effort employees spend on various grants. In addition, the Grant Director will begin reviewing this documentation on a periodic basis, to ensure complete compliance. Contact Person Responsible for Corrective Action: Chanda Cleaves, Executive Director of Finance Completion Date: This issue will be corrected moving forward.

Categories

Student Financial Aid Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 1164878 2025-004
    Material Weakness Repeat
  • 1164879 2025-005
    Material Weakness Repeat
  • 1164880 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $20.29M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $8.64M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1.43M
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $1.12M
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.09M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $706,690
10.553 SCHOOL BREAKFAST PROGRAM $676,794
10.558 CHILD AND ADULT CARE FOOD PROGRAM $325,968
84.425 AMERICAN RESCUE PLAN $176,384
10.555 ENTITLEMENT COMMODITIES $171,859
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $100,459
84.425 EMERGENCY ASSISTANCE TO NON PUBLIC SCHOOLS $83,931
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $55,592
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $36,824
93.778 MEDICAL ASSISTANCE PROGRAM $32,697
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $7,794