Finding Text
Finding No.: 2022-005
Pass-Through Entity: Federated States of Micronesia National Government
Federal Agency: U.S. Department of the Interior
AL Program: 15.875 Economic, Social, and Political Development of the Territories
Federal Award No.: Various Compact Sector Grants
Area: Special Tests and Provisions – Annual Performance Reviews
Questioned Costs: $16,887
Criteria:
In accordance with grant terms and conditions, all personnel funded under Education Sector and Supplemental Education Grant (SEG) are required to undergo an annual performance evaluation, and such evaluation shall be maintained as part of the personnel files and made available when requested for purposes of grant oversight or audits.
Condition:
For 1 (or 4%) of 25 employees tested, the annual performance evaluation for fiscal year 2022 was incomplete.
"See Schedule of Findings and Questioned Costs for chart/table"
Cause:
The State did not effectively enforce controls over compliance with performing annual performance evaluations as stipulated in the grant awards.
Effect: The State is in noncompliance with the requirement, and total questioned costs of $16,887 are reported because the projected questioned costs exceed the threshold.
Recommendation:
Responsible personnel should implement procedures to periodically monitor employees funded under the Program, perform the required annual performance evaluations, and maintain resulting reports on file.
Views of Responsible Officials:
We do not agree with the finding as the annual evaluation was performed by the teacher and his supervisor. We understand that individual evaluation points did not add up to the stated total point in the evaluation form because page 3 was blank and the addition was incorrect.Auditor Response:
The annual performance evaluation provided for the selected employee did not appear complete as required by the program.