Finding 401069 (2023-001)

2023-001 – Controls for Monitoring Payroll Charged to the Grant U.S. DEPARTMENT OF EDUCATION Passed through Massachusetts Department of Elementary and Secondary Education Special Education Cluster Special Education Grants to States – Federal Assistance Listing Number 84.027 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Compliance and Internal Control over Compliance – Other Matter Criteria or Specific Requirement: Grantees must provide reasonable assurance that Federal awards are expended only for allowable activities and that the costs of goods and services charged to Federal awards are allowable and in accordance with the applicable cost principles. Condition: Management did not maintain proper supporting documentation for payroll expenditures charged to the special education grants to ensure the accuracy and eligibility of the expenditures. Questioned Costs: None Reported. Context: Payroll expenditures charged to the special education grant are required to be supported with documentation regarding the eligibility of the employee as well as documentation that payroll charged to the grant relates to time spent on accomplishing grant objectives (i.e. time and effort certifications). The District was unable to provide this supporting documentation for the employees charged to the grant. Effect: The District has not complied with the grant requirements. Cause: Lack of procedures in place to ensure compliance with grant requirements. Recommendation: Management should implement procedures to ensure that adequate supporting documentation is maintained to support the eligibility of payroll charged to the grants. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the findings and for the school year 2023-2024, the District will ensure that all payroll expenditures charged to the special education grant are supported with documentation regarding the eligibility of the employees paid out of the grant, as well as documentation that payroll charged to the grant was time spent on accomplishing grant objectives (i.e. time and effort certifications).