Finding 50004 (2022-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 48315
Organization: Palmdale Aerospace Academy (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization lacks proper controls for time accounting documentation, failing to meet federal requirements for salary charges.
  • Impacted Requirements: Compliance with Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii) is not met, affecting payroll cost documentation.
  • Recommended Follow-Up: Review and implement procedures to ensure compliance with federal time accounting documentation requirements for employees involved in multiple activities.

Finding Text

Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: COVID-19: COVID-19: Elementary and Secondary School Emergency Relief (ESSER) Fund and COVID-19: Elementary and Secondary School Emergency Relief II (ESSER II) Fund Assistance Listing Number: 84.425D Compliance Requirement: A/B Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition The Organization did not have sufficient controls in place to ensure that employees charged to the program maintain time accounting documentation in accordance with federal requirements. Questioned Costs There were no direct questioned costs associated with the condition identified. Context A significant amount of the federal expenditures related to these programs are derived from payroll costs. While the salaries appear to be reasonable and necessary for the program objectives, the Organization did not provide the required supporting documentation as outlined in the Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) for two of 56 employees selected for testing. Effect The Organization has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Cause The condition identified appears to have materialized due to clerical oversight and lack of appropriate review. Repeat Finding No. Recommendation The Organization should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency identified with the Organization?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 50003 2022-002
    Significant Deficiency
  • 50005 2022-003
    Significant Deficiency
  • 50006 2022-003
    Significant Deficiency
  • 50007 2022-004
    Significant Deficiency Repeat
  • 50008 2022-005
    Significant Deficiency
  • 626445 2022-002
    Significant Deficiency
  • 626446 2022-002
    Significant Deficiency
  • 626447 2022-003
    Significant Deficiency
  • 626448 2022-003
    Significant Deficiency
  • 626449 2022-004
    Significant Deficiency Repeat
  • 626450 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $797,053
10.555 National School Lunch Program $787,932
84.027 Special Education_grants to States $336,443
10.553 School Breakfast Program $193,098
84.367 Improving Teacher Quality State Grants $108,307
84.425 Education Stabilization Fund $743