Finding 544751 (2024-002)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: Payroll expenses were incorrectly charged to the federal grant based on budget allocations instead of actual approved time worked.
  • Impacted Requirements: This violates the Compliance Supplement, which mandates that compensation must reflect actual time worked (2 CFR 200.430(i)).
  • Recommended Follow-Up: Implement policies to ensure payroll expenditures are based on verified hours worked to comply with federal guidelines.

Finding Text

2024 – 002 Allowable Costs Federal Agency: U.S. Department Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425U, 84.425D, 84.425W Pass-Through Agency: Indiana Department of Education Pass-Through Numbers: S425U210013, S425D210013, S425W210013 Award Period: July 1, 2023 – June 30, 2024 Type of Finding:  Material Weakness in Internal Control over Compliance  Material Noncompliance Criteria or specific requirement: The Compliance Supplement requires that compensation for personal services be charged to the federal grant based upon approved actual time worked on the program and not based on an allocation or budget (2 CFR 200.430(i)). Condition: While performing audit procedures, it was noted that payroll expenses were charged to the grant program based upon an allocation from the budget and not on approved and/or certified time worked in the program. Questioned costs: $234,052 Context: During the process of obtaining an understanding of internal controls and processing of payroll expenditures, we noted payroll was not reviewed to ensure the expense charged to the grants was accurate based upon approved actual time spent in the program. Cause: Salary figures for salaried employees were charged to the federal grant based on unapproved work actually performed for the program. Effect: The organization has not fully followed compliance attributes with the allowable costs principles set forth by the Compliance Supplement related to allocation of salaries being charged based on approved time worked for a program. Personnel need to reinforce policies to ensure control procedures are in place to ensure salaries charged to a grant are appropriately based on actual approved time worked in a program. Repeat Finding: No. Recommendation: We recommend the School ensure policies and procedures for payroll expenditures for grant programs be charged to the federal grant based on approved hours worked in the program. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2024-002 Allowable Costs Recommendation: We recommend the School ensure policies and procedures for payroll expenditures for grant programs be charged to the federal grant based on approved hours worked in the program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: For federally funded employees, CFO will complete semiannual certifications to validate federal grant based payroll expenses. Time and Distribution logs will be used for any part time federally funded employees. Name(s) of the contact person(s) responsible for corrective action: Deborah S. Czmiel Planned completion date for corrective action plan: 05/31/2025

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 544750 2024-001
    Significant Deficiency
  • 544752 2024-003
    Significant Deficiency
  • 544753 2024-001
    Significant Deficiency
  • 544754 2024-002
    Material Weakness
  • 544755 2024-003
    Significant Deficiency
  • 544756 2024-001
    Significant Deficiency
  • 544757 2024-002
    Material Weakness
  • 544758 2024-003
    Significant Deficiency
  • 1121192 2024-001
    Significant Deficiency
  • 1121193 2024-002
    Material Weakness
  • 1121194 2024-003
    Significant Deficiency
  • 1121195 2024-001
    Significant Deficiency
  • 1121196 2024-002
    Material Weakness
  • 1121197 2024-003
    Significant Deficiency
  • 1121198 2024-001
    Significant Deficiency
  • 1121199 2024-002
    Material Weakness
  • 1121200 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.282 Charter Schools $270,163
10.555 National School Lunch Program $81,216
84.010 Title I Grants to Local Educational Agencies $51,344
10.553 School Breakfast Program $13,581
84.425 Education Stabilization Fund $1,106
84.027 Special Education Grants to States $0