Finding 1175578 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-02-26
Audit: 389393
Auditor: SORREN CPAS PC

AI Summary

  • Core Issue: The District failed to keep required time and effort records for staff funded by multiple sources, particularly under the Special Education program.
  • Impacted Requirements: This lack of documentation violates federal regulations (2 CFR 200.430) regarding allowable costs and audit requirements.
  • Recommended Follow-Up: Strengthen internal controls to ensure accurate time and effort documentation for split-funded employees in federal programs, as management has acknowledged the need for improvement.

Finding Text

Criteria – The Code of Federal Regulations Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Allowable Costs/Cost Principles, and Audit Requirements for Federal Awards, 2 CFR section 200.430(i)(1)(vii) - Audit Requirements, requires and auditee to maintain documentation of time and effort records for an employee who works on multiple activities or cost objectives. Condition - The District did not maintain records for staff who were split funded and worked under the Special Education (IDEA) program cluster. Cause - Internal controls in place did not ensure staff costs charged to the program aligned with compliance requirements to maintain complete and accurate time and effort documentation. Effect or Potential Effect - The District was not in compliance with Allowable Costs/Cost Principle compliance requirements to maintain appropriate documentation of time and effort for employees who work on multiple activities or cost objectives to support time spent in Federal programs. Questioned Costs – Estimated and actual questioned costs equal $33,459. Recommendations - We highly recommend that the District enhance internal controls to ensure those staff who are split funded with costs being applied to federal programs maintain appropriate and accurate documentation of time and effort requirements when applicable to the federal program. Views of Responsible Officials and Planned Corrective Actions - Management agrees with this finding. Management will properly apply internal controls to ensure the District maintains complete and accurate time and effort documentation of split funded employees charged to applicable Federal programs.

Corrective Action Plan

The District will implement controls to ensure that time and effort documentation is maintained for staff who are split funded with costs being applied to federal program.

Categories

Allowable Costs / Cost Principles

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $445,011
84.027 SPECIAL EDUCATION GRANTS TO STATES $377,721
10.553 SCHOOL BREAKFAST PROGRAM $199,400
10.555 NATIONAL SCHOOL LUNCH PROGRAM $54,947
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $42,602
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $29,999
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $11,354
84.425 EDUCATION STABILIZATION FUND $9,695
32.009 EMERGENCY CONNECTIVITY FUND PROGRAM $7,930
93.658 FOSTER CARE TITLE IV-E $3,370