Finding Text
50000 – Time and Effort Accounting (Significant Deficiency in Internal Controls,
Noncompliance)
Federal Agency: U.S. Department of Education
Pass‐Through Entity: California Department of Education
Program Name: Education Stabilization Fund
Assistance Listing Numbers: 84.425D, 84.425U
Criteria or Specific Requirements
Per Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, 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.
Condition
The Organization did not have sufficient controls in place to ensure that retroactive payments being charged to the ESSER program for employees were for allowable activities only and not other retros during the year.
Questioned Costs
There were no questioned costs associated with the identified condition.
Context
The condition was identified through inquiry with Organization personnel and review of documentation used to prepare the retroactive calculation for each employee.
Effect
The Organization has not complied with the requirement identified in Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.430 (i)(1)(vii).
Cause
The identified condition appears to have materialized due to clerical oversight and lack of appropriate review.
Repeat Finding
Yes, see prior year finding 2022‐002.
Recommendation
The Organization 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 identified with the Organization’s time and accounting documentation as it relates to employees working on multiple activities or cost objectives.