Finding 4285 (2023-002)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2023-12-14
Audit: 6595
Organization: Town of Hingham, Massachusetts (MA)

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, leading to noncompliance with federal requirements for payroll documentation.
  • Impacted Requirements: Payroll records must accurately reflect work performed, as per CFR Title 2 Part 200.430, to ensure charges to federal awards are valid and allowable.
  • Recommended Follow-Up: Implement procedures to ensure payroll records accurately document employee time and effort related to grant programs.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Special Education Cluster Assistance Listing Number: 84,027, 84.173 Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care Pass-Through Number(s): 240-585359-2022-0131, 240-744100-2023-0131, 252-610784-2022-0131, 262-585362-2022-0131, 262-744101-2023-0131, 264-610783-2022-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition and Context: Three (3) of nine (9) payroll transactions in our statistically valid sample were not supported with documentation of level of effort for the grant. Questioned costs: • Known: $13,438 • Likely: $96,278 Cause: Procedures were not in place to ensure that supporting payroll records accurately reflected the time and effort charged to the program. Effect: Noncompliance with federal compliance requirements occurred. Repeat Finding: No. Recommendation: We recommend procedures be implemented to ensure that records supporting the distribution of employee time and effort accurately reflect the charges to the grant program. Views of responsible officials: Hingham Public Schools has circulated training guides and templates to grant writers on the requirement to have time and effort reporting completed in a timely manner for staff assigned to specific grants. Grant accounting associates have also been provided with the training material to ensure that there is an additional review of time and effort reports as part of the grant accounting, review and finalization process.

Corrective Action Plan

Hingham Public Schools has circulated training guides and templates to grant writers on the requirement to have time and effort reporting completed in a timely manner for staff assigned to specific grants. Grant accounting associates have also been provided with the training material to ensure that there is an additional review of time and effort reports as part of the grant accounting, review and finalization process.

Categories

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Material Weakness Reporting

Other Findings in this Audit

  • 4286 2023-003
    Significant Deficiency
  • 4287 2023-004
    Significant Deficiency Repeat
  • 580727 2023-002
    Material Weakness
  • 580728 2023-003
    Significant Deficiency
  • 580729 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.39M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $254,752
84.425 Education Stabilization Fund $154,703
93.778 Medical Assistance Program $119,987
10.555 National School Lunch Program $110,044
84.027 Special Education_grants to States $107,204
45.310 Grants to States $55,995
97.044 Assistance to Firefighters Grant $29,117
10.553 School Breakfast Program $26,198
97.039 Hazard Mitigation Grant $16,800
84.367 Improving Teacher Quality State Grants $11,140
84.010 Title I Grants to Local Educational Agencies $10,556
84.424 Student Support and Academic Enrichment Program $8,187
20.610 State Traffic Safety Information System Improvement Grants $7,602
15.616 Clean Vessel Act Program $3,894
84.173 Special Education_preschool Grants $1,292