Finding 559666 (2022-002)

IMPROVE CONTROLS OVER TIME AND EFFORT REPORTING (COMPLIANCE FINDING/SIGNIFICANT DEFICIENCY) ASSISTANCE LISTING NUMBER: 84.010 PROGRAM TITLE: Title I, Part A - Grants to Local Educational Agencies FEDERAL AGENCY: U.S. Department of Education CONDITION: During our audit of the School's Title I program for the fiscal year 2022, we noted that the School did not consistently review and approve semi-annual certifications in a timely manner. These certifications are required to document the time and effort of employees who work solely on Title I activities. CRITERIA: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) requires that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. For employees who work solely on a single federal award or cost objective, semi-annual certifications are required. These certifications must be signed by the employee or a supervisory official having firsthand knowledge of the work performed by the employee. CAUSE: The School lacked sufficient internal controls to ensure that semi-annual certifications were reviewed and approved in a timely manner. There was no established procedure to consistently monitor and follow up on the completion and approval of these certifications. EFFECT: The failure to timely review and approve semi-annual certifications could result in non-compliance with federal requirements and raises concerns over the accuracy and completeness of time and effort reporting for employees working on Title I activities. QUESTIONED COSTS: There are no questioned costs associated with this finding. RECOMMENDATION: We recommend that the School implement procedures to strengthen internal controls over time and effort reporting. Specifically, the school district should: 1. Establish a timeline for the completion, review, and approval of semi-annual certifications. 2. Designate a responsible individual or team to monitor compliance with this timeline. 3. Provide training to relevant personnel on the importance of timely review and approval of semi-annual certifications. 4. Periodically review and update procedures to ensure ongoing compliance with federal requirements. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: Management’s views and corrective action plan is included at the end of this report after the summary schedule of prior year audit findings and status.