Finding Text
Finding: 2023-002 – Allowable Costs
Information of Federal Program:
Title I Grant to Local Educational Agencies – CFDA No. 84.010A
Criteria: 2 CFR Part 200 requires the District to have the following internal controls in place
in order to determine allowability under federal awards; 1) Be necessary and reasonable for
the performance of the federal award and be allocable thereto under the principles in 2 CFR
Part 200, Subpart E. 2) Conform to any limitations or exclusions set forth in 2 CFR Part
200, Subpart E or in the federal award as to types or amount of cost items. 3) Be consistent
with policies and procedures that apply uniformly to both federally financed and other
activities of the non-federal entity. 4) Be accorded consistent treatment. A cost may not be
assigned to a federal award as a direct cost if any other cost incurred for the same purpose
in like circumstances has been allocated to the federal award as an indirect cost. Condition: During our testing of the District, we noted that three (3) of the nine (9) Title I
teachers did not have a signed certification of time on file to support payroll costs charges
to the Federal program.
Cause: The District did not have proper procedures in place regarding proper
documentation of performance within the grant by the employee.
Effect or Potential Effect: The breakdown of internal controls in the area could adversely affect
the recording, processing and reporting of financial data.
Questioned Costs: None
Context: Disbursements were made by the District without proper documentation of
participation in the grant by the employee.
Repeat Finding: No
Recommendation: Policies and procedures should be implemented to either obtain the
certification of time or have the employee complete a personal activity report (PAR).
Views of responsible officials and planned corrective action: Management is in agreement
and will implement a Corrective Action Plan, see pages 61-62 of the current year audit.