Finding 577672 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2023-11-06
Audit: 2298
Auditor: Bonadio & CO LLP

AI Summary

  • Core Issue: The School District lacked proper controls to document employee salary distribution for those working on both Federal and non-Federal awards.
  • Impacted Requirements: Compliance with 2 CFR section 200.430 for documenting time and effort for employees involved in multiple cost objectives was not met.
  • Recommended Follow-Up: Establish a review process for Certification of Federal Award forms to ensure accurate documentation and compliance with Federal guidelines.

Finding Text

Finding 2023-001 – Special Education Cluster (IDEA) AL# 84.027, 84.173; Federal Agency – U.S. Department of Education; Pass-through Agency – New York State Department of Education; Grant period – July 1, 2022 – June 30, 2023 Condition: The School District did not have a control in place to ensure that there was adequate documentation, in accordance with 2 CFR section 200.430, of the distribution of an employee’s salary among specific activities when an employee worked on both a Federal award and a non- Federal award. Certification of Federal Award forms were prepared, but they did not indicate the fulltime equivalent (FTE) time to be allocated to the grant and they were not reviewed. Criteria: The Department of Education Cross-Cutting Section of the 2023 Compliance Supplement indicates, “if a school operating a schoolwide program does not consolidate Federal funds with State and local funds in a consolidated schoolwide pool, an employee who works, in whole or in part, on a Federal program or cost objective must document time and effort as follows: (a) For an employee who works solely on a single cost objective (e.g., a single Federal program whose funds have not been consolidated or Federal programs whose funds have been consolidated but not with State and local funds), an LEA is not required to maintain records reflecting the distribution of the employee’s salary and wages, including among the Federal programs included in the consolidation, if applicable. (b) For an employee who works on multiple activities or cost objectives (e.g., in part on a Federal program whose funds have not been consolidated in a consolidated schoolwide pool and in part on Federal programs supported with funds consolidated in a schoolwide pool or on activities that are not part of the same cost objective), an LEA must maintain time and effort distribution records in accordance with 2 CFR section 200.430(i)(1)(vii) that support the portion of time and effort dedicated to: i. The Federal program or cost objective; and ii. Each other program or cost objective supported by consolidated Federal funds or other revenue sources. Cause: There was turnover in the Chief Executive Director of HR & Grants Management position, and as such, there was no position clearly tasked with the responsibility of reviewing the Certification of Federal Award forms during the year. Effect: The School District could have claimed grant reimbursement for an employee when the employee may not have actually worked hours related to, or allowable under, that program. Context: The School District indicated that the Certification of Federal Award forms were not reviewed for any of the employees charged to the grants under the Special Education Cluster. Auditor’s Recommendation: The School District should implement a process in which employee’s time is documented on the Certification of Federal Award forms and the forms are reviewed by an individual with sufficient knowledge about the employee’s duties and the Federal program in order to ensure the costs are allowable and adequately documented. View of Responsible Officials and Planned Corrective Actions: The Assistant Superintendent of Curriculum & Instruction will work with the Business office and the Human Resources department to ensure that the Certification of Federal Awards forms accurately reflect the employee's time charged to the grant. The forms will be reviewed to ensure the costs are allowable and properly documented.

Categories

Cash Management

Other Findings in this Audit

  • 1230 2023-001
    Significant Deficiency
  • 1231 2023-001
    Significant Deficiency
  • 1232 2023-001
    Significant Deficiency
  • 1233 2023-001
    Significant Deficiency
  • 577673 2023-001
    Significant Deficiency
  • 577674 2023-001
    Significant Deficiency
  • 577675 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425D Education Stabilization Fund $1.26M
84.027 Special Education_grants to States $730,115
10.555 National School Lunch Program $599,907
84.010 Title I Grants to Local Educational Agencies $505,699
84.027X Special Education_grants to States $160,812
10.553 School Breakfast Program $128,636
84.367 Improving Teacher Quality State Grants $87,528
84.425U Education Stabilization Fund $70,731
84.424 Student Support and Academic Enrichment Program $43,503
84.173 Special Education_preschool Grants $37,680
84.173X Special Education_preschool Grants $17,903
84.425W Education Stabilization Fund $3,887
84.365 English Language Acquisition State Grants $92