Finding 39435 (2022-001)

Section III - Federal Award Findings and Questioned Costs Finding: 2022-001 ? Other Matters ? Personnel Activity Reports (PARs) Programs: AL 84.425 Education Stabilization Fund Agency: U.S. Department of Education Criteria: Per 2 CFR 200.430(i)(vii) budget estimates alone do not qualify as support for payroll and other charges but may be used for interim accounting provided that the system used to establish the estimate produces reasonable approximations of the activity. Condition: For 4 out of 4 employees selected, no Personnel Activity Reports (PARs) were able to be provided documenting the allocation of the work performed on each grant. Cause: The School District did not comply with the requirements related to documentation of personnel expense as per CFR Title 2 Section 200.430. Effect: The use of budget estimates to allocate payroll and other charges may not be a reasonable approximation of the activity performed. Questioned Costs: None noted. Recommendation: We recommend that the School District maintain personnel activity reports for each employee. The certification will include the employee?s name and position, the period of employment, the name of the federal program, be completed after the work is done and be signed and dated by the employee periodically, in accordance with documentation requirements. Views of Responsible Officials: See Corrective Action Plan.