Finding 29498 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-01-10

AI Summary

  • Core Issue: The District's payroll system lacks accurate time and effort reporting for teachers under the grant, violating 2 CFR 200.430.
  • Impacted Requirements: Internal controls failed to ensure compliance with reporting standards, leading to inaccurate payroll records.
  • Recommended Follow-Up: The District should review and strengthen control procedures to ensure proper time and effort documentation and compliance with federal guidelines.

Finding Text

Finding 2022-001: Time and Effort Reporting 84.027, 84.173 - Special Education Cluster Passed Through the New York State Education Department DEPARTMENT OF EDUCATION Condition/Criteria : Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context : A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause : The District does not currently have records that support time and effort for teachers under the grant. Effect: The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Management Response: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his/her FTE funded, and the grant source. This statement is also signed by his or her supervisor.

Corrective Action Plan

Finding 2022-001: Time and effort reporting Department of Education Passed through the New York State Department of Education 84.027, 84.173 Special Education Cluster Condition/Criteria: Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context: A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause. The District does not currently have records that support time and effort for teachers under the grant. Effect? The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Action Taken: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his or her FTE funded, and the grant source. This statement is also signed by his or her supervisor.

Categories

Allowable Costs / Cost Principles HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 29799 2022-001
    Significant Deficiency
  • 29800 2022-001
    Significant Deficiency
  • 605940 2022-001
    Significant Deficiency
  • 606241 2022-001
    Significant Deficiency
  • 606242 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $319,769
10.553 School Breakfast Program $132,740
84.425 Education Stabilization Fund $115,492
84.010 Title I Grants to Local Educational Agencies $49,195
10.555 National School Lunch Program $32,302
84.367 Improving Teacher Quality State Grants $21,354
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education_preschool Grants $8,977
84.365 English Language Acquisition State Grants $6,580