Finding Text
2024-006 – U.S. Department of Education, For the Period July 1, 2023, through June 30, 2024, Assistance Listing #10.553-10.582 – Title IA Statement of Condition: During the review of wage rate documentation for Title IA funded personnel, it was noted that 2 out of 25 wage rates lacked evidence of proper approval. Specifically, the documentation did not include required signatures or formal authorization from designated approving officials, as outlined in internal control procedures and federal compliance requirements. Criteria: Per Title I, Part A regulations and applicable federal cost principles (2 CFR Part 200 – Uniform Guidance), all personnel compensation charged to federal programs must be supported by documentation that reflects proper authorization and approval. This includes wage rates that are reasonable, allocable, and approved by appropriate personnel. Cause: The deficiency appears to stem from a breakdown in internal control procedures related to personnel documentation and oversight. Effect: Failure to properly approve wage rates may result in unallowable costs being charged to the Title IA program. This compromises the integrity of financial reporting and increases the risk of noncompliance with federal grant requirements. Recommendation: The District should strengthen its internal controls by implementing a standardized review and approval process for all wage rates charged to Title IA. This process should include documented authorization by designated officials and periodic audits to ensure compliance. Training should also be provided to relevant staff to reinforce the importance of proper documentation and approval procedures.