FAC Explorer

Finding 398742 (2023-003)

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Requirement
E
Questioned Costs
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Year
2023
Accepted
2024-05-29
Audit: 307488
Organization: City of Lowell (MA)
Auditor: Powers & Sullivan LLC

AI Summary

  • Core Issue: The School Department failed to maintain necessary time and effort documentation for employees charged to federal awards.
  • Impacted Requirements: This violates Uniform Guidance (2 CFR 200.430(i)), which mandates accurate records for salary charges to federal programs.
  • Recommended Follow-Up: Implement and enforce time and effort reporting policies, ensure proper training, and establish oversight to maintain compliance.

Finding Text

Lack of Time and Effort Documentation for Personnel Costs Condition: During the audit period, it was discovered that the School Department did not maintain appropriate time and effort documentation for employees whose salaries are charged, in whole or in part, to federal awards. Criteria: According to Uniform Guidance (2 CFR 200.430(i)), for salaries and wages to be charged to federal awards, records must accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Cause: The City did not follow their established internal control system that requires time and effort reports or equivalent documentation to be completed and maintained for employees engaged in federally funded activities. Effect: The lack of proper time and effort documentation raises the risk of misstating salary expenses charged to federal programs and may result in questioned costs due to noncompliance with federal regulations. Questioned Costs: Total payroll costs charged to the grants in 2023 was as follows: Recommendation: The City should follow their written policies and procedures outlining the time and effort reporting and documentation requirements. Management should ensure the standardized forms are approved by the individual in charge of the grant and overseen by grant management personnel. This will ensure compliance is not impacted by employee turnover in the future. Additionally, training should be provided to ensure that all personnel are aware of documentation requirements. Views of Responsible Officials and Planned Corrective Actions: Please see submitted corrective action plan for views of responsible officials and planned corrective actions.

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $7.91M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $5.89M
10.553 School Breakfast Program $3.11M
14.218 Community Development Block Grants/entitlement Grants $1.91M
14.231 Emergency Solutions Grant Program $994,411
14.239 Home Investment Partnerships Program $590,190
16.922 Equitable Sharing Program $543,993
10.558 Child and Adult Care Food Program $463,759
14.218 Covid-19 Community Development Block Grants/entitlement Grants $423,089
10.559 Summer Food Service Program for Children $380,889
84.367 Supporting Effective Instruction State Grants $320,985
16.838 Comprehensive Opioid Abuse Site-Based Program $234,407
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $169,877
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $165,749
17.278 Wia Dislocated Worker Formula Grants $157,513
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $138,823
84.010 Title I Grants to Local Educational Agencies $124,404
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $123,771
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $113,590
93.566 Refugee and Entrant Assistance_state Administered Programs $102,341
17.258 Wia Adult Program $101,115
14.881 Moving to Work Demonstration Program $75,830
16.738 Edward Byrne Memorial Justice Assistance Grant Program $67,903
84.287 Twenty-First Century Community Learning Centers $60,438
84.027 Special Education_grants to States $60,000
84.424 Student Support and Academic Enrichment Program $52,273
14.895 Jobs-Plus Pilot Initiative $51,894
84.048 Career and Technical Education -- Basic Grants to States $47,327
84.002 Adult Education - Basic Grants to States $39,518
45.310 Covid-19 Grants to States - Library Services Technology Act $36,802
10.582 Fresh Fruit and Vegetable Program $34,615
16.710 Public Safety Partnership and Community Policing Grants $33,440
84.196 Education for Homeless Children and Youth $32,785
17.259 Wia Youth Activities $32,261
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $28,674
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $17,201
17.207 Employment Service/wagner-Peyser Funded Activities $16,525
84.425 Covid-19 Education Stabilization Fund $16,020
17.801 Jobs for Veterans State Grants $14,343
16.203 Promoting Evidence Integration in Sex Offender Management Discretionary Grant Program $12,981
20.600 State and Community Highway Safety $12,600
84.365 English Language Acquisition State Grants $9,831
20.616 National Priority Safety Programs $8,400
17.285 Apprenticeship USA Grants $8,391
17.225 Unemployment Insurance $7,699
84.215 Fund for the Improvement of Education $6,400
84.371 Striving Readers $5,998
93.268 Covid-19 Immunization Cooperative Agreements $5,090
84.173 Special Education_preschool Grants $3,844
81.128 Energy Efficiency and Conservation Block Grant Program (eecbg) $3,644
15.946 Cultural Resources Management $190