Finding Text
Condition: While testing controls, a group of employees were identified that the District missed when completing their triannual procedures related to obtaining time and effort or personnel activity reports from employees paid from grants. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Effect: In this instance, the District performed time and effort and personnel activity reports as a control procedure not specifically required by the grant, due to the type of payroll. This could have been a much more significant issue if it had been associated with certain other grants. Cause: The grant administrator indicated the employees were likely missed due to timing of posting payroll to the project and the reclassification of costs between projects during the year due to changes from the state level associated with accounting for the Education Stabilization Funds. Recommendation: The District should implement and document standardized processes and procedures to identify employees throughout the District who are required to keep time and effort or personnel activity reports during the year. We also recommend general training be completed for all staff regarding this requirement. Views of Responsible Officials and Planned Corrective Action: The District will consider implementation of more standardized requirements associated with time and effort and personnel activity reporting requirements. The District will also consider additional training associated with these requirements for all grant related staff.