Finding 523009 (2024-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-02-12
Audit: 342283
Auditor: Bonadio & CO LLP

AI Summary

  • Core Issue: Employees working on federal programs did not consistently document their time and effort, leading to potential compliance risks.
  • Impacted Requirements: Lack of proper records for employees with less than 100% allocation to the grant violates documentation standards under 2 CFR section 200.430.
  • Recommended Follow-Up: Implement stronger procedures for documenting and reviewing time and effort for all employees, especially those not fully allocated to the grant.

Finding Text

Criteria If a school operating a schoolwide program does not consolidate federal funds with state and local funds in a consolidated schoolwide pool, an employee who works, in whole or in part, on a federal program or cost objective must document time and effort as follows: (a) For an employee who works solely on a single cost objective (e.g., a single federal program whose funds have not been consolidated or federal programs whose funds have been consolidated but not with State and local funds), an LEA is not required to maintain records reflecting the distribution of the employee’s salary and wages, including among the Federal programs included in the consolidation, if applicable. (b) For an employee who works on multiple activities or cost objectives (e.g., in part on a federal program whose funds have not been consolidated in a consolidated schoolwide pool and in part on federal programs supported with funds consolidated in a schoolwide pool or on activities that are not part of the same cost objective), an LEA must maintain time and effort distribution records in accordance with 2 CFR section 200.430(i)(1)(vii) that support the portion of time and effort dedicated to: (i) The federal program or cost objective; and (ii) Each other program or cost objective supported by consolidated federal funds or other revenue sources. Condition/Context We haphazardly sampled thirteen employees who received compensation under the Title I grant. We viewed the employee time sheet and payroll certifications and annual certifications determining that the employee’s time and effort and payroll certifications are reviewed and approved. We noted that eight of the employees that spent less than 100% of their time on the grant did not indicate how much of their time was allocated to the grant. Therefore, we were unable to verify these employees’ time and effort. We also noted two employees that had missing payroll certifications. Therefore, we were unable to verify approval of the certification had occurred. The sampling methodology used was not statistically valid. Cause Time and effort statements were not prepared in all cases and adequate oversight of the employee’s payroll certification was not in place in order to identify mistakes approved pay. Effect Without demonstrable, documented controls supporting compliance with Title I compliance standards, compliance with the requirements may not be assured. Questioned Costs Known and likely questioned costs were not determinable. Recommendation We recommend that the School District institute additional procedures to ensure that employee’s time and effort, for those with less than 100% allocated to the grant, and payroll certifications are documented and reviewed for accuracy. View of Responsible Officials The School District will institute additional procedures to ensure that time and effort determinations are reviewed and accurate.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 523004 2024-001
    Significant Deficiency
  • 523005 2024-001
    Significant Deficiency
  • 523006 2024-001
    Significant Deficiency
  • 523007 2024-001
    Significant Deficiency
  • 523008 2024-001
    Significant Deficiency
  • 523010 2024-001
    Significant Deficiency
  • 523011 2024-001
    Significant Deficiency
  • 1099446 2024-001
    Significant Deficiency
  • 1099447 2024-001
    Significant Deficiency
  • 1099448 2024-001
    Significant Deficiency
  • 1099449 2024-001
    Significant Deficiency
  • 1099450 2024-001
    Significant Deficiency
  • 1099451 2024-001
    Significant Deficiency
  • 1099452 2024-001
    Significant Deficiency
  • 1099453 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $771,537
84.425 Education Stabilization Fund $710,746
84.365 English Language Acquisition State Grants $215,608
10.555 National School Lunch Program $177,567
84.173 Special Education Preschool Grants $95,575
84.010 Title I Grants to Local Educational Agencies $65,103
84.424 Student Support and Academic Enrichment Program $60,055
10.579 Child Nutrition Discretionary Grants Limited Availability $46,898
84.027 Special Education Grants to States $13,337
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $531