Finding Text
Criteria: Established internal controls surrounding documentation of federal award compliance requirements should ensure that all charges to Federal awards for salaries and wages are based on records that accurately reflect the work performed. Accordingly, time and effort documentation are required to be maintained which clearly documents “after-the -fact” determinations of amounts for which individuals have worked on the federal program. These records should correspond with the internal control policies and procedures maintained by the District. Condition and Context: During our current year audit, we noted (2) instances of time and effort certifications associated with personnel charged to the Title I program were signed only by the employee and not signed by supervisory personnel. The additional (4) personnel tested were appropriately signed by both the employee and supervisory personnel. W also noted the District made certain adjusting entries during the year reflecting corrections of payroll charges to the grant. Additionally, the District was unable to file the required final reporting associated with the various grants within the 60 days. Cause and effect: In the previous fiscal year (fiscal year 2022), the District implemented a formalized grants manual. However, the District has experienced significant turnover in personnel in recent years. Current personnel continue to work to cleanup grant reporting within the ledger and reporting to the pass-through entity. Based upon our discussions with personnel, additional steps are being made to ensure personnel are charged appropriately within the accounting system annually, thereby eliminating the need for certain journal entry reclassifications. Perspective Information: In the prior year there was a finding related to time and effort certifications related to the SPED IDEA grant. In the current year, the District no longer charges personnel costs to the federal award. Findings related to continued enhanced formalization of grant compliance was previously reported. During fiscal year 2022, the District implemented a grants manual. Questioned Costs: None. Auditor’s Recommendation: We recommend the District review the adopted grants manual on an annual basis. The design and implementation of internal control over grant compliance is the ongoing responsibility of management. Grant personnel should work closely with accounting and business office personnel to ensure all activity is posted to the proper grants/accounts as incurred and all reporting can be completed in a timely manner. We recommend additional approval of subsequent reclassification of activity (non-standard journal entries). District personnel should review established policies and procedures on a routine basis to not only ensure the District’s compliance with all aspects of established policies and procedures, but also the ever-changing requirements of federal grant programs. pursuant to OMB. We recommend all District established policies and procedures be reviewed on an annual basis to ensure continued compliance with each grant’s specific requirements and requirements pursuant to OMB. We recommend an additional centralized monitoring program be established to ensure the Districts compliance with all federal programs.