Finding 1182365 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393804
Organization: City of Portsmouth (NH)

AI Summary

  • Core Issue: There was a significant deficiency in internal controls related to timely completion of time and effort certifications for payroll transactions.
  • Impacted Requirements: Compliance with CFR Title 2 Part 200.430, which mandates accurate records for federal award salary charges.
  • Recommended Follow-Up: Strengthen procedures to ensure timely completion of time and effort certifications for all payroll transactions.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number: H027A240103 Pass-Through Agency: New Hampshire Department of Education Pass-Through Number(s): 20230519, 20241089, 20250423 Award Period: July 1, 2024 – June 30, 2025 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: For three (3) of twenty-two (22) payroll transactions tested, time and effort certifications were not completed in a timely manner. Questioned costs: None Cause: Procedures were not in place to ensure that time and effort certifications were completed in a timely manner for all applicable transactions. Effect: Noncompliance with federal requirements occurred. Repeat Finding: No. Recommendation: We recommend procedures be strengthened to ensure that time and effort certifications are completed in a timely manner. Views of responsible officials: Management agrees with the finding.

Corrective Action Plan

2025-001 Special Education Cluster - Assistance Listing Number 84.027, 84.173 Recommendation: We recommend procedures be strengthened to ensure that time and effort certifications are completed in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City will implement procedures to ensure time and effort certifications are completed in a timely manner for all payroll costs charged to federal awards in accordance with 2 CFR 200.430. The School Department will establish a standardized process requiring employees and supervisors to complete and approve certifications within a defined timeframe following the applicable payroll period. The School Department will maintain a tracking mechanism to monitor completion and will perform periodic reviews to ensure certifications are submitted timely and accurately to reflect the employee’s total activity. Departments will be notified of any missing or late certifications and required to submit documentation promptly. These procedures will strengthen internal controls and ensure compliance with federal documentation requirements. Name(s) of the contact person(s) responsible for corrective action: Brian Cisneros, Business Administrator Planned completion date for corrective action plan: Implemented immediately and effective for all current and future federal awards.

Categories

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1182364 2025-001
    Material Weakness Repeat
  • 1182366 2025-002
    Material Weakness Repeat
  • 1182367 2025-002
    Material Weakness Repeat
  • 1182368 2025-003
    Material Weakness Repeat
  • 1182369 2025-003
    Material Weakness Repeat
  • 1182370 2025-003
    Material Weakness Repeat
  • 1182371 2025-003
    Material Weakness Repeat
  • 1182372 2025-003
    Material Weakness Repeat
  • 1182373 2025-003
    Material Weakness Repeat
  • 1182374 2025-003
    Material Weakness Repeat
  • 1182375 2025-004
    Material Weakness Repeat
  • 1182376 2025-004
    Material Weakness Repeat
  • 1182377 2025-004
    Material Weakness Repeat
  • 1182378 2025-004
    Material Weakness Repeat
  • 1182379 2025-004
    Material Weakness Repeat
  • 1182380 2025-004
    Material Weakness Repeat
  • 1182381 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $1.04M
84.425 EDUCATION STABILIZATION FUND $942,123
84.027 SPECIAL EDUCATION GRANTS TO STATES $742,054
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $413,605
16.543 MISSING CHILDREN'S ASSISTANCE $139,489
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $108,855
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $106,384
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $97,129
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $46,229
97.115 ASSISTANCE TO FIREFIGHTERS GRANT (ARRA) $42,326
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $31,092
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $27,959
16.575 CRIME VICTIM ASSISTANCE $24,739
20.205 HIGHWAY PLANNING AND CONSTRUCTION $21,944
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $21,415
10.555 NATIONAL SCHOOL LUNCH PROGRAM $15,652
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $14,470
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $10,597
97.039 HAZARD MITIGATION GRANT $8,730
16.922 EQUITABLE SHARING PROGRAM $6,470
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $4,611
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $4,214
10.553 SCHOOL BREAKFAST PROGRAM $2,104
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $1,062
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $200