FAC Explorer

Finding 485785 (2023-006)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-09-05
Audit: 318604
Organization: Town of Winchendon, Massachusetts (MA)
Auditor: Roselli Clark and Associates

AI Summary

  • Core Issue: The School failed to maintain necessary time and effort certifications for employees funded by federal grants, leading to non-compliance with cost principles.
  • Impacted Requirements: Compliance with 2 CFR section 200.309, which mandates that only allowable costs incurred during the performance period can be charged to federal awards.
  • Recommended Follow-Up: Implement procedures to collect time and effort certifications semi-annually for single grant employees and monthly for those involved in multiple grants.

Finding Text

2023-006 U.S. Department of Education Passed-through the Commonwealth of Massachusetts Department of Elementary and Secondary Education Special Education Cluster – ALN(s) 84.027 & 84.173 COVID-19 - Special Education Cluster – ALN(s) 84.027X & 84.173X Material Weakness in Internal Controls over Compliance and Compliance Finding Criteria: Per 2 CFR section 200.309 of the Uniform Guidance, a non-federal entity may charge to a Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity. Condition: Time and effort certifications were not maintained for grant employees’ whose salaries and wages were not supported by detailed time records. Cause: The School did not assign the preparation of federal payroll documentation to any employee. Effect: The School is not in compliance with applicable cost principles related to salaries and wages. Questioned Costs: $121,309.68 Repeat Finding from Prior Year: No Recommendation: The School should implement procedures to obtain time and effort certifications from grant employees whose wages are not supported with detailed time records. Time and effort certifications should be obtained on a semi-annual basis for employees whose work is solely for a single grant and on a monthly basis for employees whose work involves more than one grant or activity. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Material Weakness in Internal Controls over Compliance Condition: Time and effort certifications were not maintained for grant employees’ whose salaries and wages were not supported by detailed time records. Corrective Action Planned: The School Business Office is working with the SPED department to implement a system for completion and maintenance of time and effort certifications for federally funded grants salaries, based on the recommendations of the Town auditors. Anticipated Completion Date: September 30, 2024 Contact: Liz Latoria, School Business Manager

Categories

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness Period of Performance Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.10M
84.425 Education Stabilization Fund $620,099
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $279,729
10.553 School Breakfast Program $237,508
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $143,030
84.027 Special Education_grants to States $60,716
66.040 State Clean Diesel Grant Program $43,934
10.555 National School Lunch Program $31,080
84.010 Title I Grants to Local Educational Agencies $24,628
84.367 Improving Teacher Quality State Grants $11,416
84.173 Special Education_preschool Grants $1,937
84.424 Student Support and Academic Enrichment Program $1,852