Finding 1165676 (2025-003)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2025-12-19

AI Summary

  • Core Issue: The District failed to ensure that costs charged to federal awards were allowable, leading to unallowable salary expenses.
  • Impacted Requirements: Compliance with federal regulations regarding allowable costs and internal controls for payroll processes was not met.
  • Recommended Follow-Up: Implement additional review procedures for time reporting and ensure staff hold necessary credentials through regular monitoring.

Finding Text

Finding 2025-003 (Material Weakness) Program(s): Special Education Cluster (IDEA) Federal Agency: United States Department of Education AL #: Cluster 84.027 / 84.173 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entities: Missouri Department of Elementary and Secondary Education Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria: Per relevant statutory and regulatory provisions, costs must be allowable as specified in the regulations indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable. Condition: The District must demonstrate that costs incurred are allowable and internal controls are in place to record hours worked and required educational credentials for staffing levels. The Auditor noted hours per timesheet did not reconcile to hours per payroll system for services rendered for four samples and one sample did not hold the required educator credentials for their staffing level. Cause: The District did not follow internal control processes / procedures for payroll funded by federal assistance. Effect: Unallowable salary expenses were charged to the federal award. Questioned Costs: $7,821 Context: The total salaries and wages were $4,010,539 and the likely questioned costs are $422,283. Is the finding a repeat finding: No Recommendation: We recommend the District implement additional review procedures for the time and effort reporting process and continue to ensure personnel hold required educator credentials for their staffing level by periodically monitoring this information. Views of Responsible Officials/ Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Corrective Action Plan

Identifying Number: 2005-003 Audit Finding: The District must demonstrate that costs incurred are allowable and internal controls are in place to record hours worked and required educational credentials for staffing levels. Hours per timesheet did not reconcile to hours per payroll system for services rendered for four samples and one sample did not hold the required educator credentials for their staffing level. Corrective Actions Taken or Planned (Timesheets): The District agrees with the finding. The District will implement and strengthen the following internal controls to ensure that hours paid agree with time reported by June 30, 2026. a. Training – The District has fully implemented an electronic time keeping system for hourly employees. Training has been provided to all hourly staff, and supervisors responsible to review and approve time reported. Person responsible for implementation: Erin Thompson, Chief Finance Officer b. SOP: Business & Finance will continue training of employees and supervisors who review and approve time worked. Person responsible for implementation: Erin Thompson, Chief Finance Officer c. MonitoringLeadership will periodically meet with the Department Director to verify compliance. Person responsible for implementation: Dr. Latanya Franklin Chief Academic & Accountability Officer d. Reporting: On a district-wide basis, the Payroll Department will provide to management when adherence to procedures is not followed. Person responsible for implementation: Erin Thompson, Chief Finance Officer Corrective Actions Taken or Planned (Credentials): The District agrees with the funding. The District will implement and strengthen the following internal controls to ensure staff have the required educational credentials. a. SOP: Human Resources maintain a central repository documenting certification-related notifications Person responsible for implementation: Micah Enders, Executive Director Human Recourses b. Monitoring: On a quarterly basis, reviews will be conducted to track and update certification status. Person responsible for implementation: Micah Enders, Executive Director Human Recourses c. Reporting: As part of the quarterly monitoring, a quarterly compliance report will be submitted to management. Person responsible for implementation: Micah Enders, Executive Director Human Recourses

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 1165675 2025-003
    Material Weakness Repeat
  • 1165677 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $6.54M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $6.51M
93.600 HEAD START $6.00M
84.425 COVID-19 EDUCATION STABILIZATION FUND $5.53M
10.553 SCHOOL BREAKFAST PROGRAM $3.09M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.91M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $1.58M
16.575 CRIME VICTIM ASSISTANCE $1.31M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $1.00M
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $970,247
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $871,017
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $521,419
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $499,159
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $498,992
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $379,869
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $333,135
12.999 ROTC SALARY GRANT $278,205
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $168,496
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $161,723
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $116,155
17.259 WIOA YOUTH ACTIVITIES $115,285
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $112,798
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $67,059
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $57,497
84.011 MIGRANT EDUCATION STATE GRANT PROGRAM $14,407
15.U12 400 YEARS AFRICAN AMERICAN HISTORY $9,538