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Finding 2025-001 – Activities Allowed or Unallowed and Allowable Costs/Cost Principles – Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name & Assistance Listing Number: Title I Grants to Local Educational Agencies (LEAs) – ALN #84.010 Federal Award Identification Number & Year: 0000000279-00 12060-20679-2025-82070- 170002 and 2025 Name of Pass-through Entity: Connecticut State Department of Education Criteria According to 2 CFR, Part 200.430(i)(1) charges to Federal awards for salaries and wages must be based on records that accurately reflect the actual work performed, which must, among other things: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition During the year ended June 30, 2025, the Academy had insufficient support for the review and of time and effort spent on the allowable activities related to the Title I grant. Cause Approval signature was not documented on Semi-Annual Time Certification Form. This lack of approval therefore did not demonstrate that any review had been performed over salary allocations using Title I grant revenue. Effect or Potential Effect As a result of the lack of review, the teachers' salaries allocated to the Title I grant may not be accurate. Questioned Costs None Context We selected four employees charged to the Title I grant to test for controls over time and effort. The Academy did not have evidence of review of the Title I teachers' time and effort for any of the four employees tested. Identification as a Repeat Finding This is not a repeat finding. Recommendation The Academy should have written documentation for each teacher's time and effort related to allowable activities for Title I grant. The Academy should also review this time and effort report on a periodic basis and include a review process to ensure the policy is followed. Reporting Views of Responsible Officials We agree with the finding and will develop and implement procedures to address the finding.