Finding Text
Finding 2025-004 Award Year: 2024-2025 Federal program: U.S. Department of Education – 84.010 Title I Grants to Local Educational Agencies (Title 1, Part A of the ESEA) Pass-through entity: Oregon Department of Education Criteria: Per 2 CFR 200.303, a non-Federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: The District could not provide documentation of time and effort certifications or an acceptable alternative for payroll charged to the federal program. The deficiency in controls over compliance related to reporting is considered a significant deficiency. Cause: The cause appears to be related to staff turnover. Effect or potential effect: Without adequate controls over allowable costs related to payroll, the District could charge unallowable costs to the grant. Questioned Costs: No questioned costs identified. Context: Out of a population of 5,107 payroll transactions, excluding related benefits, totaling $6,240,176, a sample of 40 transactions, totaling $42,514, was selected. Of the sample selected, the District could not provide documentation of time and effort certifications or an acceptable alternative for 10 transactions, totaling $22,591. Recommendation: The District should ensure controls related to compliance with allowable costs requirements related to payroll are implemented. Views of responsible officials: The District understands and concurs with this finding.