Finding 480454 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-08-05
Audit: 316649
Auditor: Crowe LLP

AI Summary

  • Core Issue: The District lacks proper records to support employee time and effort for the COVID-19 Education Stabilization Fund.
  • Impacted Requirements: Compliance with the Uniform Guidance requires documentation for payroll expenditures related to federal programs.
  • Recommended Follow-Up: Implement a system to maintain Federal Time Certifications and ensure regular management reviews of these records.

Finding Text

2023-002 – FEDERAL COMPLIANCE – MATERIAL WEAKNESS - COVID-19 EDUCATION STABILIZATION FUND (50000) FEDERAL PROGRAM: COVID-19 Education Stabilization Fund (ESF) FEDERAL AGENCY: U.S. Department of Education AWARD YEAR: 2022-2023 ASSISTANCE LISTING NUMBER: 84.425C, 84.425D, 84.425U NAME OF PASS-THROUGH ENTITY: California Department of Education Criteria: The Uniform Guidance Department of Education Cross Cutting Section under the compliance requirements Allowable Costs/Cost Principles state that if an employee works on multiple activities or cost objectives, the District must maintain records that support the portion of time and effort dedicated to the federal program. Condition: The District does not maintain records, such as Federal Time Certifications, that support the portion of time and effort for employees whose payroll is expended to the COVID-19 Education Stabilization Fund (ESF) federal program. Cause: The District was unable to locate any supporting documentation to verify the time and effort charged to the federal program was split and allocated appropriately or that it was reviewed by management. Effect: Payroll expenditures charged to the program could be overstated or understated. Fiscal Impact/Questioned Costs: The net questioned costs totaled $232,041. Recommendation: We recommend the District keep records of the time and effort employees work on federal programs and that management regularly review those records. Views of Responsible Officials and Planned Corrective Actions: The district will ensure that all federally paid employees have a supporting and accurate Federal Time Certification record.

Categories

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 480453 2023-002
    Material Weakness
  • 480455 2023-002
    Material Weakness
  • 480456 2023-002
    Material Weakness
  • 480457 2023-002
    Material Weakness
  • 480458 2023-003
    Significant Deficiency
  • 480459 2023-003
    Significant Deficiency
  • 1056895 2023-002
    Material Weakness
  • 1056896 2023-002
    Material Weakness
  • 1056897 2023-002
    Material Weakness
  • 1056898 2023-002
    Material Weakness
  • 1056899 2023-002
    Material Weakness
  • 1056900 2023-003
    Significant Deficiency
  • 1056901 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $123,603
84.425 Covid-19 - Education Stabilization Fund $74,133
84.367 Improving Teacher Quality State Grants $25,590
10.555 National School Lunch Program $15,952
84.027 Special Education_grants to States $11,151
84.173 Special Education_preschool Grants $3,462
84.424 Student Support and Academic Enrichment Program $2,500
84.027 Covid-19 - Special Education_grants to States $625