Finding 1180691 (2025-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-03-17

AI Summary

  • Core Issue: Salary allocations for grant programs at Los Angeles Southwest College were incorrectly reported, leading to discrepancies between time and effort reports and payroll charges.
  • Impacted Requirements: The inaccuracies violate allowable cost principles, as time and effort reports must accurately reflect hours worked to justify salary costs charged to grants.
  • Recommended Follow-Up: Review and correct time and effort reporting processes to ensure alignment with payroll records and grant requirements, and provide training to staff on accurate reporting.

Finding Text

Allowable Costs/ Cost Principles: Incorrect Salary Allocations Charged to Programs: Student Support Services Program (Award No. P042A201884) For 2 of 5 time and effort reports selected for allowable costs testwork at Los Angeles Southwest College, we noted the hours worked related to this grant program per the employee’s time and effort report did not agree to the employee’s payroll amount charged to the grant as follows: – One (1) time and effort report reported no hours worked on the grant program; however, 56 hours were charged to the grant program per the general ledger of expenditures. • One (1) time and effort report reported 10.5 hours worked on the grant program; however, 62 hours were charged to the grant program per the general ledger of expenditures. Talent Search Program (Award No. P044A210635) For 1 of 4 time and effort reports selected for allowable costs testwork at Los Angeles Southwest College, we noted the hours worked related to this grant program per the employee’s time and effort report did not agree to the employee’s payroll amount charged to the grant as follows: • One (1) time and effort reported 10% of the employee’s total hours were charged to the grant program; however, 24.11% of total hours were charged to the grant program per the general ledger of expenditures. As a result, the time and effort reports did not accurately support the salary costs charged to the grant programs.

Corrective Action Plan

Management concurs with the finding and recommendation. The condition resulted from a process gap in which payroll reallocations were made to comparable programs without a corresponding post-adjustment review against certified time and effort documentation. While initial certifications were obtained, a control step was not in place to ensure that subsequent allocation changes remained aligned with after-the-fact certifications. To address this, program management will implement a formal, standardized time and effort process that includes periodic after-the-fact certifications and a required reconciliation between certified effort and payroll distributions before charges are finalized to federal awards. Management will also establish clear internal controls to govern reallocations, require supervisory review of variances, and provide targeted training to staff on 2 CFR §200.430(i) requirements. Personnel Responsible for Implementation: Nyame-Tease Prempeh Position of Responsible Personne: Director of Accounting Expected Date of Implementation: February 1, 2026

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1180676 2025-001
    Material Weakness Repeat
  • 1180677 2025-001
    Material Weakness Repeat
  • 1180678 2025-001
    Material Weakness Repeat
  • 1180679 2025-001
    Material Weakness Repeat
  • 1180680 2025-002
    Material Weakness Repeat
  • 1180681 2025-002
    Material Weakness Repeat
  • 1180682 2025-002
    Material Weakness Repeat
  • 1180683 2025-002
    Material Weakness Repeat
  • 1180684 2025-003
    Material Weakness Repeat
  • 1180685 2025-003
    Material Weakness Repeat
  • 1180686 2025-003
    Material Weakness Repeat
  • 1180687 2025-003
    Material Weakness Repeat
  • 1180688 2025-004
    Material Weakness Repeat
  • 1180689 2025-004
    Material Weakness Repeat
  • 1180690 2025-004
    Material Weakness Repeat
  • 1180692 2025-005
    Material Weakness Repeat
  • 1180693 2025-005
    Material Weakness Repeat
  • 1180694 2025-005
    Material Weakness Repeat
  • 1180695 2025-005
    Material Weakness Repeat
  • 1180696 2025-006
    Material Weakness Repeat
  • 1180697 2025-006
    Material Weakness Repeat
  • 1180698 2025-006
    Material Weakness Repeat
  • 1180699 2025-006
    Material Weakness Repeat
  • 1180700 2025-007
    Material Weakness Repeat
  • 1180701 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $214.97M
84.268 FEDERAL DIRECT STUDENT LOANS $22.37M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $5.78M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $5.45M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $4.59M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $4.47M
84.033 FEDERAL WORK-STUDY PROGRAM $3.77M
84.042 TRIO STUDENT SUPPORT SERVICES $2.81M
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $2.17M
84.047 TRIO UPWARD BOUND $2.14M
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $1.90M
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $1.46M
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $1.04M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $1.02M
93.493 CONGRESSIONAL DIRECTIVES $774,771
84.044 TRIO TALENT SEARCH $641,362
10.558 CHILD AND ADULT CARE FOOD PROGRAM $632,943
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $408,936
17.261 WORKFORCE DATA QUALITY INITIATIVE (WDQI) $391,354
93.658 FOSTER CARE TITLE IV-E $354,101
94.006 AMERICORPS STATE AND NATIONAL 94.006 $317,119
84.335 CHILD CARE ACCESS MEANS PARENTS IN SCHOOL $311,111
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $269,624
10.223 HISPANIC SERVING INSTITUTIONS EDUCATION GRANTS $250,561
93.600 HEAD START $230,335
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $218,215
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $208,827
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $158,626
84.305 EDUCATION RESEARCH, DEVELOPMENT AND DISSEMINATION $139,739
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $81,975
84.334 GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS $81,916
45.031 AMERICAN LATINO MUSEUM INTERNSHIP AND FELLOWSHIP INITIATIVE $51,769
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $37,820
47.050 GEOSCIENCES $18,201