Finding Text
Finding No. 2022-001 Information on the Federal Program Title I Grants to Local Educational Agencies Federal Assistance Listing No. 84.010 Criteria or Specific Requirement The Appendix to 2 CFR Part 225 requires an employee whose salary and wages are supported, in whole or in part, with Federal Funds to document his/her time spent working on Federal programs in order to ensure that charges to each Federal program reflect an accurate account of the employee?s time and effort devoted to that program. There are two allowable types of documentation: semiannual certifications and personnel activity reports. Condition The School District failed to maintain proper time and activity reports for employees charged to the Title I grant. Questioned Costs N/A - None Context During our testing of the Title I program, we noted that various employee salaries were split between Federal programs without maintaining proper personnel activity reports, at least monthly. While some documentation was maintained, the reports were not signed by the employee and were not prepared at least monthly, as required. In addition, one employee tested who worked solely on Title I, did not have a semiannual certification on file, as required. Effect or Potential Effect The District did not comply with federal grant requirements and there is a risk the School District could face penalties if selected for any type of monitoring by the State. Cause A breakdown in internal controls over ensuring proper time records are being maintained. Identification as a Repeat Finding The condition did not exist in the immediately preceding fiscal year. Recommendation That the District maintain an effective system of internal control over Federal programs as required by the Appendix to 2 CFR Part 225, requiring proper time records for Federal supported salaries. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.