Finding 2023-004 – Education Stabilization Fund – AL No.’s 84.425D & 84.425U
Department of Education
Massachusetts Department of Elementary and Secondary Education
Noncompliance and Significant Deficiency Related to Internal Control over Compliance of the Major Program
Criteria: Where employees work solely or partially on a single Federal program or cost objective, their salaries or wages must be supported by periodic certification that the employee worked on these programs for the period covered by the programs. The certifications should be prepared at least semi-annually, and should be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee.
Condition: During our test of controls over compliance with time and effort certifications the Town was not able to provide evidence that the required certifications of time and effort for employees whose time was spent either completely or partially spent on these programs was performed as required by Uniform Guidance.
Questioned Costs: Unknown
Context: During our test of payroll transactions of the major program (Education Stabilization Fund) it was noted that the time and effort certification for employees tested were not completed.
Effect: The Town was not in compliance with the time and effort certification requirements.
Cause: Time and Effort Certifications were issued semi-annually. However, in some circumstances staff had terminated employment and letters were not issued outside of the school setting.
Identification as a Repeat Finding: 2022-004
Recommendation: We recommend the Town of Bellingham follow procedures to ensure that semi-annual certifications and/or monthly certifications are prepared and signed by either the employees and/or supervisory official having first-hand knowledge of the work performed by the employees in a timely manner in order to comply with the time and effort certification requirement.
Responsible for Corrective Plan: Director of Finance, Schools
Estimated Completion Date: December 2024
Action Taken: We have amended our process for issuing Time and Effort Certifications. We are now emailing them and if they are returned, we will re-issue to their home address with a self-addressed stamped envelope. In some circumstances such as committee work, we will have the staff sign an acknowledgement at the time of the meeting(s).