Finding 46031 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-03-30
Audit: 46797
Auditor: Crowe LLP

AI Summary

  • Core Issue: The District failed to provide necessary documentation for payroll related to the Head Start program, violating federal compliance requirements.
  • Impacted Requirements: Lack of appropriate internal controls and supporting documentation for payroll expenditures led to non-compliance with Uniform Guidance.
  • Recommended Follow-Up: Implement robust internal controls and training for staff to ensure compliance with federal program requirements and proper documentation practices.

Finding Text

2022-003 ? DEFICIENCY ? FEDERAL COMPLIANCE (50000) Federal Programs: SJCOE Head Start Cluster (AL#93.600) ? collectively referred to herein as ?Head Start?. Criteria: Per the Uniform Guidance Compliance Supplement, established in accordance with 2 CFR Part 200, Subpart F: Sections A. Activities Allowed or Unallowed, and B. Allowable Costs require that costs charged be supported by appropriate documentation, and correctly charged as to account, amount and period. Condition: The District was unable to provide supporting documentation for payroll for one employee charged to the Head Start program. The Uniform Guidance compliance also require internal control procedures to be in place and followed in order to demonstrate compliance with the requirements. As a result, the District did not have appropriate internal control procedures in place, nor was the expenditure compliant with Uniform Guidance requirements. Effect: The District did not comply with the necessary requirements for maintaining supporting documentation for payroll expenditures charged to the program, therefore resulting in risk of loss of funding for amounts paid. Cause: The District did not follow necessary internal controls for ensuring compliance with the specific program requirements of the Head Start grants it received and expended during the year ended June 30, 2022. Questioned Cost: Known questioned costs are $12,614 and likely questioned costs are $15,623, totaling $28,237. Recommendation: The District?s management team should implement necessary internal controls to ensure compliance with all Federal program requirements. The internal controls should include (1) a procedure identifying which attributes apply to each Federal program operated by the District, and (2) steps to ensure compliance with each attribute identified as applicable. Views of Responsible Officials and Planned Corrective Action: Management concurs with findings. District management will continue to provide staff members internal control procedure training specifically in the areas of federal procurement. This will ensure adherence to Federal program requirements.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: Management concurs with findings. District management will continue to provide staff members internal control procedure training specifically in the areas of federal procurement. This will ensure adherence to Federal program requirements.

Categories

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 46022 2022-002
    Material Weakness
  • 46023 2022-002
    Material Weakness
  • 46024 2022-002
    Material Weakness
  • 46025 2022-002
    Material Weakness
  • 46026 2022-002
    Material Weakness
  • 46027 2022-002
    Material Weakness
  • 46028 2022-002
    Material Weakness
  • 46029 2022-002
    Material Weakness
  • 46030 2022-002
    Material Weakness
  • 622464 2022-002
    Material Weakness
  • 622465 2022-002
    Material Weakness
  • 622466 2022-002
    Material Weakness
  • 622467 2022-002
    Material Weakness
  • 622468 2022-002
    Material Weakness
  • 622469 2022-002
    Material Weakness
  • 622470 2022-002
    Material Weakness
  • 622471 2022-002
    Material Weakness
  • 622472 2022-002
    Material Weakness
  • 622473 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $18.66M
93.600 Head Start $9.10M
84.367 Improving Teacher Quality State Grants $1.96M
84.365 English Language Acquisition State Grants $1.14M
84.010 Title I Grants to Local Educational Agencies $1.00M
84.027 Special Education_grants to States $457,020
84.048 Career and Technical Education -- Basic Grants to States $455,700
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $361,665
93.575 Child Care and Development Block Grant $315,151
10.558 Child and Adult Care Food Program $313,829
84.002 Adult Education - Basic Grants to States $166,590
84.424 Student Support and Academic Enrichment Program $156,497
84.425 Covid-19 - Education Stabilization Fund $147,681
12.235 Navy Junior Rotc $115,418
84.181 Special Education-Grants for Infants and Families $67,388
84.060 Indian Education_grants to Local Educational Agencies $41,119
84.196 Education for Homeless Children and Youth $12,106
84.173 Special Education_preschool Grants $1,018