Finding 580729 (2023-004)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2023-12-14
Audit: 6595
Organization: Town of Hingham, Massachusetts (MA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over payroll records for the ESSER I program, lacking documented review and approval.
  • Impacted Requirements: Compliance with CFR Title 2 Part 200.430, which mandates accurate records for salary and wage charges to federal awards.
  • Recommended Follow-Up: Implement procedures to ensure payroll records include documented evidence of review and approval to prevent unallowable expenditures.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: ESSER I Assistance Listing Number: 84.425D Federal Award Identification Number: N/A Pass-Through Agency: Massachusetts Department of Elementary and Secondary Education Pass-Through Number(s): 113-397270-2021-0131 Award Period: July 1, 2021 – June 30, 2023 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters 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: Ten (10) of ten (10) payroll transactions in our statistically valid sample were supported by records which accurately reflected the work performed. However, such records did not include documented evidence of review and approval which would provide reasonable assurance that the charges were accurate, allowable, and properly allocated. Questioned costs: Below the reportable limit Cause: Procedures were not in place to ensure the payroll records were supported by the Town’s internal controls. Effect: Federal funds could be expended for unallowable activities and subject to disallowance. Repeat Finding: Yes, 2022-002 Recommendation: We recommend procedures be implemented to ensure that the records supporting payroll charges to the federal grant program include documented evidence of review and approval. Views of responsible officials: The Hingham Public School's general weekly payroll is approved on a weekly basis by Management. In the case of our summer programs a similar control has been put in place by Management to ensure all payroll records are approved before processing.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 4285 2023-002
    Material Weakness
  • 4286 2023-003
    Significant Deficiency
  • 4287 2023-004
    Significant Deficiency Repeat
  • 580727 2023-002
    Material Weakness
  • 580728 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.39M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $254,752
84.425 Education Stabilization Fund $154,703
93.778 Medical Assistance Program $119,987
10.555 National School Lunch Program $110,044
84.027 Special Education_grants to States $107,204
45.310 Grants to States $55,995
97.044 Assistance to Firefighters Grant $29,117
10.553 School Breakfast Program $26,198
97.039 Hazard Mitigation Grant $16,800
84.367 Improving Teacher Quality State Grants $11,140
84.010 Title I Grants to Local Educational Agencies $10,556
84.424 Student Support and Academic Enrichment Program $8,187
20.610 State Traffic Safety Information System Improvement Grants $7,602
15.616 Clean Vessel Act Program $3,894
84.173 Special Education_preschool Grants $1,292