Finding 22380 (2022-003)

-
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-06-13

AI Summary

  • Core Issue: The School District failed to document $127,443 in Title I expenditures due to employees not completing required timesheets.
  • Impacted Requirements: Compliance with 2 C.F.R. § 200.403(g) and 2 C.F.R. § 200.303(a) regarding documentation and internal controls for federal awards.
  • Recommended Follow-Up: The Treasurer must ensure all employees charging salaries to federal grants are documented properly to avoid questioned costs and potential funding penalties.

Finding Text

2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.403 (g) which provides that except where otherwise authorized by statute, costs must be adequately documented in order to be allowable under Federal awards. Further, 2 C.F.R ? 200.303(a) provides that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The School District has established approved rates of pay for employees. Further, timesheets and/or single funded certificates was used to document time and effort of personnel relating to Title I activities. However, in the current year the employees were to be moved from the Title I program and did not complete timesheets/single funded certificates, which resulted in an estimated amount of $127,443 in Title I expenditures that could not be supported as related to Title I activities. As such, the $127,443 from the Title I Fund AL # 84.010 is considered a questioned cost. Failure to make corrections to employess and maintain the appropriate time and effort documentation resulted in questioned costs and can result in reduced future federal funding or the requirement to repay the Ohio Department of Education. The Treasurer should ensure all employees charging salaries and benefits to federal grants are allowable under the current year program and maintain the appropriate documentation supporting the time spent on the grant, in accordance with the School District?s policy.

Corrective Action Plan

The district will implement procedures to ensure that personnel paid from federal funding complete single funding certifications and/ or time and effort logs.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $682,697
84.010 Title I Grants to Local Educational Agencies $478,893
84.027 Special Education_grants to States $365,195
21.019 Coronavirus Relief Fund $353,694
10.553 School Breakfast Program $212,457
10.555 National School Lunch Program $69,777
84.424 Student Support and Academic Enrichment Program $28,659
84.173 Special Education_preschool Grants $12,622
10.649 Pandemic Ebt Administrative Costs $614