Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Special Education Cluster
Assistance Listing Number: 84,027, 84.173
Federal Award Identification Number: N/A
Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education and the Massachusetts Department of Early Education and Care
Pass-Through Number(s): 240-585359-2022-0131, 240-744100-2023-0131, 252-610784-2022-0131, 262-585362-2022-0131, 262-744101-2023-0131, 264-610783-2022-0131
Award Period: July 1, 2021 – June 30, 2023
Compliance Requirement: Allowable Costs / Cost Principles
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Material Noncompliance (Modified Opinion)
Criteria or specific requirement:
The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity.
Condition and Context:
Three (3) of nine (9) payroll transactions in our statistically valid sample were not supported with documentation of level of effort for the grant.
Questioned costs:
• Known: $13,438
• Likely: $96,278
Cause:
Procedures were not in place to ensure that supporting payroll records accurately reflected the time and effort charged to the program.
Effect:
Noncompliance with federal compliance requirements occurred.
Repeat Finding:
No.
Recommendation:
We recommend procedures be implemented to ensure that records supporting the distribution of employee time and effort accurately reflect the charges to the grant program.
Views of responsible officials:
Hingham Public Schools has circulated training guides and templates to grant writers on the requirement to have time and effort reporting completed in a timely manner for staff assigned to specific grants. Grant accounting associates have also been provided with the training material to ensure that there is an additional review of time and effort reports as part of the grant accounting, review and finalization process.