Finding Text
2 CFR § 200.430(g) states in part, “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Furthermore, Cleveland Municipal School District has adopted a Time and Effort Reporting policy that requires that all federal compensation charges be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated in accordance with 2 CFR § 200.430.
In order to address the requirements in their policy and federal regulations, the District established a control procedure in which the Cost Center Manager or higher grant manager is required to certify an employee's charge to a federal grant within the Workday accounting system.
Due to insufficient staffing and knowledge of the District policy and federal regulation, 28 of 40 (70%) tested employee compensation charges to the Child Nutrition Cluster and 31 of 40 (78%) charges to the Education Stabilization Grant were certified more than six months from the original pay date.
This weakness could lead to a loss of accountability over Federal Time and Effort Reporting and could result in a loss or reduction of funding and potential questioned costs, related to these grants
The District should establish procedures to ensure that employee compensation charges, to a federal grant, are timely reviewed for accuracy, allowability and proper allocation. Further, the District should update the existing policy to require the time and effort certifications to be completed within two months of the transaction date.