Finding Text
Reference Number: 2025-004 Program Name: Special Education Cluster Description: Unallowable Costs Condition: During our testing, we noted that 4 individuals had benefit expenditures charged for employees with no corresponding salaries charged to the grant. Criteria: Per 2 CFR 200.405 and 2 CFR 200.431, fringe benefits must be allocable to the award in proportion to the salaries and wages charged. Cause: The District lacked adequate internal controls to ensure fringe benefits charged to the grant were tied to allowable documented salaries. Effect: Unallowable costs resulted from charging benefits without salaries. Questioned Costs: Not applicable – known questioned costs did not exceed the $25,000 reporting threshold. Identification of a Repeat Finding: This is not a repeat finding. Auditors’ Recommendation: We recommend the District review payroll reports while completing grant claims to ensure fringe benefits are associated with salaries. Views of Responsible Officials: See attachment for the District’s corrective action plan.