Finding Text
SIGNIFICANT DEFICIENCY Finding: 2022-004 Agency: U.S. Department of Education Program: Elementary and Secondary School Emergency Relief (ESSER) Fund Federal Assistance Listing Number: 84.425D ALLOWABLE COSTS/COST PRINCIPLES Criteria: 2 CFR Part 200 Subpart E, Cost Principles, states that compensation for employees engaged in work on Federal awards must be documented as provided in 2 CFR Section 200.430(i). Although 2 CFR Section 200.430(i) does not specifically require semi-annual certifications, the Foster-Glocester Regional School District has a policy in place for time and effort reporting on Federal grant programs. The policy requires semi-annual certifications for employees charged to Federal grants working on a single cost objective. Condition: During our test of controls over compliance with allowable costs/cost principles requirements, we noted that the required semi-annual certifications were not completed for employees working on a single cost objective during fiscal year 2022. Cause: The School District did not follow its established time and effort reporting policies and procedures. Effect: The School District did not have the required documentation on file for employees charged to a single cost objective in conformance with the School District?s policy. Questioned Costs: None Recommendation: We recommend that the School District follow established time and effort reporting procedures to ensure that proper documentation is maintained for employees engaged in work on Federal grant programs. Corrective Action/Auditee Views: The District?s payroll process is significantly lacking proper control procedures. With the hiring of a new financial manager, policies, procedures and controls will be implemented immediately, including the proper tracking of time and effort for employees charged to federal grants as required. Anticipated Completion Date: September 1, 2023 Contact Person: Amanda Raymond, Director of Finance