Finding Text
2023-002 - Allowable Costs/Cost Principles
Federal Program Information:
Department of Education -
Passed through the Maine Department of Education:
ALN: - 84.010 - Title I - Grants to Local Educational Agencies
Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)
Condition: During the audit process it was identified that the School Department did not
maintain sufficient documentation that reflected the work performed.
Cause: The school department does not have the necessary internal controls over
compliance.
Effect: This School Department does not have records that reflect an accurate account of
the employee’s time and effort devoted to the program, which could have allowed incorrect
amounts to be charged to the grant.
Identification of Questioned Costs: None identified.
Context: The population for the test consisted of 53 payroll expenditures. We tested 18 out
of 21 employees. The School Department completed time and effort certifications for all
employees; however, the following issues were identified. 18 employees did not have the
proper documentation for the distribution of their wages. The entity’s internal control noted
that the direct supervisor overseeing the work completed should sign the documentation,
where in these cases the superintendent signed. The documentation for 7 out of the 18
employees time and effort certifications were signed prior to the work being completed and
the documentation for 2 out of the 18 employees noted an incorrect percentage charged to
the grant. This is not a statistically valid sample.
Repeat Finding: This is a repeat finding of 2022-001.
Recommendation: It is recommended that the School Department implement internal
control processes and procedures to ensure that time certifications are completed at the
period end to ensure charges reflect an accurate account of the employee’s time devoted to
the program.
Views of Responsible Officials and Corrective Action Plan: Please see the Corrective
Action Plan issued by Town of Millinocket School Department.