Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: ESSER I
Assistance Listing Number: 84.425D
Federal Award Identification Number: N/A
Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education
Pass-Through Number(s): 113-397270-2021-0131
Award Period: July 1, 2021 – June 30, 2023
Compliance Requirement: Allowable Costs / Cost Principles
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
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:
Ten (10) of ten (10) payroll transactions in our statistically valid sample were supported by records which accurately reflected the work performed. However, such records did not include documented evidence of review and approval which would provide reasonable assurance that the charges were accurate, allowable, and properly allocated.
Questioned costs:
Below the reportable limit
Cause:
Procedures were not in place to ensure the payroll records were supported by the Town’s internal controls.
Effect:
Federal funds could be expended for unallowable activities and subject to disallowance.
Repeat Finding:
Yes, 2022-002
Recommendation:
We recommend procedures be implemented to ensure that the records supporting payroll charges to the federal grant program include documented evidence of review and approval.
Views of responsible officials:
The Hingham Public School's general weekly payroll is approved on a weekly basis by Management. In the case of our summer programs a similar control has been put in place by Management to ensure all payroll records are approved before processing.