Finding Text
2024-002 Miscellaneous [50000]
Federal Program Information
Program and Catalog Number: COVID-19: ESF Programs
Award Year: 2023-2024 2023-2024
Passed Through: California Department of Education from U.S. Department of
Education
Criteria or Specific Requirement
OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, requires specific
documentation for federally funded employees. If an employee is funded solely (100%) from a single
federal categorical program or cost objective, the minimum requirement for documenting salary or wages
is a semi-annual certification by the employee that he/she worked solely on that federal categorical
program or cost objective. The certification must be signed by the employee and the supervisor having
first-hand knowledge of the work performed.
Whenever an employee works in more than one categorical program or cost objective, and at least one
of the sources is federal, the distribution of the employee’s salary must be supported by a personnel
activity report. These personnel activity reports are filled out monthly, unless the District elects to use the
approved substitute system, beginning July 1, 1998. Under this substitute system, the personnel activity
reports are required to be completed every fourth month (three times per year).
Condition
The payroll charges for all 19 employees’ gross payroll being charged to COVID-19: ESF Programs (84.425)
were supported by a completed and signed personnel activity report (PAR). However, the PARs were
completed late.
Questioned Costs
The total questioned costs are $363,910. (See charts below for program totals.)
Perspective
COVID-19: ESF Programs (84.425)
Personnel Activity Report was not Completed
and Signed in a Timely Manner
Number of Employees Amount
Population 19 $ 363,910.00
Sample Size 19 363,910.00
Questioned Costs 19 363,910.00
Effect
Although PARs were properly completed and signed for all employees selected for audit, the PARS for
Certificated employees were completed late. Adequate and timely documentation is a requirement to
support these payroll charges to federal awards. The District may be required to pay back the questioned
costs or make additional program expenditures in the subsequent year if the questioned costs are
disallowed.
Cause
The personnel activity reports for 19 certificated employees were prepared and signed, but they were
late. The procedure requiring completed and signed personnel activity reports for federally funded
employees was followed, but the reports were late.
Recommendation
Properly completed and signed personnel activity reports should be prepared in a timely manner and
should document all salary expenditures charged to Federal programs. The forms should be completed
semi-annually for employees whose payroll is charged 100% to the Federal program. If an employee’s
payroll is charged at less than 100% to a single Federal program, then the personnel activity report should
be completed at least every four months (three times during the school year).
District's Response
The District’s Administration will closely monitor procedures for the timely completion of personnel
activity reports.