Finding Text
2024-002 – Significant Deficiency in Internal Control over Major Federal Program and Noncompliance – Documentation of Employee Time and Effort. Career and Technical Education – Basic Grants to the States, ALN # 84.048 and 84.048A, Award Numbers 233480 231400, 233480 231405, 233480 231410 and 243520 24124
Federal Agency: U.S. Department of Education
Criteria – Title 2 CFR 200.430 states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. It is the School District’s procedure to utilize semi-annual certifications for all employees paid through federal funds.
Condition- The School District did not sufficiently document its employees’ actual time spent on federal programs by completing semi-annual certifications or recording their time accurately on their timesheets. Except for the administration, the employees were hired as full-time employees specifically for the Career and Technical Education grant, and although their time was accurately calculated and posted to the grant in their payroll system, the timesheets were not accurate, and the semi-annual certifications were not completed. Incorrect timesheets were noted for six of the twenty-five employees tested and missing semi-annual certification were missing for twenty-five of the twenty-five employees tested.
Questioned Costs – None, the employees time was accurately calculated and recorded to the grant in the payroll system.
Cause and Effect – The School District’s Career and Technical Education Program Director fell ill during the school year. The Associate Superintendent for Business and Operations stepped up to run the program in addition to her regular duties. The School District did not follow the Board Policy regarding “Time and Effort Reporting”. It appears staffing issues led to a lack of internal controls to identify and correct these errors and ensure complete compliance.
Recommendation – We recommend the School District directs personnel to oversee the compliance of the Career and Technical Education grants and can verify employees are completing the “Time and Effort” reporting as required by the grant and the School Districts policy of same – annual certification for all employees paid through federal grants.
View of Responsible Officials – The School District agrees with our finding and recommendation.
Planned Corrective Actions – See corrective action plan, annexed.