Finding 24925 (2022-009)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-04-12
Audit: 24025
Organization: Ojai Unified School District (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District failed to maintain proper documentation for employee salary charges to the Education Stabilization Fund, violating federal regulations.
  • Impacted Requirements: Compliance with Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii) regarding accurate time accounting records.
  • Recommended Follow-Up: The District should establish procedures to ensure compliance with federal documentation requirements for employees working on multiple funding sources.

Finding Text

Federal Program Affected Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Compliance Requirement: A/B (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. A semi-annual certification may be completed if 100% of an employee?s time if charged to one Federal award. Conditions The District uses the HRA form to document the administrator?s approval to charge employee costs to specific accounts, including those for restricted funds. We noted the following: ? HRAs for two of the 31 employees selected for the test of payroll charged to ESF did not include the resource code to which the employees were charged. ? One HRA did not document the employee?s authorized step and column placement on the salary schedule. ? The salary paid an employee was not properly documented on the HRA and could not be traced to a salary schedule. The District did not have sufficient controls in place to ensure that employees who were charged to Education Stabilization Fund programs completed time accounting documentation in accordance with federal requirements. The District was not able to provide time accounting documentation for one of 31 employees selected for testing. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii). Cause The condition identified appears to have materialized due to the District?s lack of established procedures to ensure compliance with the requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Repeat Finding No. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency currently identified with the District?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 24923 2022-009
    Material Weakness
  • 24924 2022-009
    Material Weakness
  • 24926 2022-009
    Material Weakness
  • 24927 2022-009
    Material Weakness
  • 24928 2022-009
    Material Weakness
  • 24929 2022-007
    Material Weakness
  • 24930 2022-008
    Material Weakness
  • 24931 2022-007
    Material Weakness
  • 24932 2022-008
    Material Weakness
  • 24933 2022-007
    Material Weakness
  • 24934 2022-008
    Material Weakness
  • 24935 2022-007
    Material Weakness
  • 24936 2022-008
    Material Weakness
  • 24937 2022-007
    Material Weakness
  • 24938 2022-008
    Material Weakness
  • 601365 2022-009
    Material Weakness
  • 601366 2022-009
    Material Weakness
  • 601367 2022-009
    Material Weakness
  • 601368 2022-009
    Material Weakness
  • 601369 2022-009
    Material Weakness
  • 601370 2022-009
    Material Weakness
  • 601371 2022-007
    Material Weakness
  • 601372 2022-008
    Material Weakness
  • 601373 2022-007
    Material Weakness
  • 601374 2022-008
    Material Weakness
  • 601375 2022-007
    Material Weakness
  • 601376 2022-008
    Material Weakness
  • 601377 2022-007
    Material Weakness
  • 601378 2022-008
    Material Weakness
  • 601379 2022-007
    Material Weakness
  • 601380 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $461,867
84.010 Title I Grants to Local Educational Agencies $389,085
10.553 School Breakfast Program $324,726
84.367 Improving Teacher Quality State Grants $69,274
84.365 English Language Acquisition State Grants $48,561
10.555 National School Lunch Program $45,747
84.424 Student Support and Academic Enrichment Program $34,723
84.425 Education Stabilization Fund $25,869
10.665 Schools and Roads - Grants to States $12,735
84.173 Special Education_preschool Grants $11,849