Finding Text
Material Weakness in Internal Controls over Compliance (Allowable Costs/Cost Principles), and Noncompliance with Laws and Regulations. Program Impacted: 84.010 – Title I, Part A. Criteria: 2 CFR 200.430(i) requires that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Among other requirements identified in this section, these records must (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and (v) comply with the established accounting policies and practices of the District. Condition: The District did not maintain adequate controls over time and effort reporting to substantiate salaries and wages charged to the Title I, Part A grant. Cause: The District’s oversight of salaries and wages charged to the Title I, Part A grant was insufficient. Effect: The District was unable to support the accuracy of salaries and wages charged to the Title I, Part A grant. Questioned Costs: The District adjusted unsupported charges from the grant via the final request for reimbursement for the fiscal year expenditures. No questioned costs after adjustments. Context: The District utilized Personnel Activity Reports (PARs) for split-funded personnel as the control over salaries and wages charged to the Title I, Part A grant. The PARs identify the employee and total hours spent on grant-funded activities, supporting the rate at which they are to be charged during the specified period. During our review of salaries and wages charged to the grant during the audit period, we noted instances of one individual being charged at rates in excess of those specified on the associated PAR. Recommendation: We recommend that the District adhere to documented time and effort reporting procedures and maintain effective internal controls that ensure salaries and wages are allocated based on records that accurately reflect the work performed. View of Responsible Officials: The District agrees with the finding and will adhere to documented time and effort reporting procedures to ensure that salaries and wages allocated to federal awards are accurate and adequately supported.