Finding Text
Condition: The District did not comply with the required standards of Support and Salaries and Wages because employees whose time was charged to Education Stabilization Fund grants during the fiscal year did not complete monthly or semi-annual time certification forms or personnel activity reports (PAR) for their time distribution.
Criteria: The distribution of salaries and wages of employees are to be supported by either time certifications or personnel activity reports or equivalent documentation which meets the standards in Subsection 8.h. (5) of the OMB Circular A-87 Part 225 Appendix B. The certification for employees who work on one cost objective must be prepared at lease semi-annually. Personnel activity reports (PAR) for employees who work on multiple activities or cost objectives must be prepared at least monthly and meet certain prescribed standards, such as accounting for the employee's total compensation, and reflecting an after-the-fact distribution of the actual activity of each employee.
The costs of such compensation are allowable to the extent that they satisfy the specific requirements of this and other appendices under 2 CFR Part 225, and that the total compensation for individual employees: (3) Is determined and supported as provided in Subsection h. (8. Compensation for Personal Services. A.(3).)
Cause: District did not have a system in place to ensure the District complied with the required standards of Support of Salaries and Wages for an employee who needed to complete monthly or semi-annual certifications and that the time allocation on the grant is reported accurately.
Effect: It is more likely that the extent of effort charged to the various cost objectives may not be representative of the related time devoted to the respective cost objectives.
Recommendation: In order to prevent future occurrences of this deficiency, we recommend that management require that copies of these payroll certifications be forwarded to the District Treasurer on a timely basis and that they are reviewed for accuracy.
Views of Responsible Official and Planned Corrective Actions: The District agrees with this recommendation. Brian Bartlett, School Business Administrator has reviewed the requirement with the District’s Payroll Coordinator, District Treasurer and Deputy Treasurer to ensure that all staff paid out of Federal grants are accompanied with the appropriate certification form or PAR. The District will review staff currently being funded through any Federal grant during 2023-24 is completing a certification form, which will be filed with the applicable grant going forward. This will be the responsibility of the District Treasurer and this change will be completed by June 30, 2024.