Finding 58436 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-06-07

AI Summary

  • Core Issue: Time and effort certifications were not properly completed or signed, and HR approval for wage rates was missing.
  • Impacted Requirements: Compliance with federal grant terms under 2 CFR Part 200 Uniform Guidance was not met.
  • Recommended Follow-Up: Ensure all time and effort certifications are completed per policy and maintain documentation of HR wage rate approvals.

Finding Text

2022 ? 004 ? Allowable Cost/Cost Principles ? Payroll Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Pass-Through Agency: Arizona Department of Education Pass-Through Number(s): All Pass-Though Numbers Present in the SEFA Award Period: March 2020 through September 2024 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and noncompliance Criteria or specific requirement: Time and effort certifications are singed off by the employee and their supervisor/department/program. An employee who leaves the district must complete the Certification for time worked prior to departure. Additionally, authorized wage rates are approved by Human Resources (HR). Condition/Context: We noted instances where time and effort certifications were not completed or signed by the employee in accordance with District?s procedures and we noted an instance of no documentation available supporting HR approval of an employee wage rate. For 2 of the 40 payroll selections the time and effort certifications were not completed and 1 of 40 was not signed by the employee. For 1 of 40 payroll selected, we were unable to obtain evidence of HR?s approval of an authorized wage rate. Questioned costs: None. Cause: The District was not aware of the error. Effect: Noncompliance with federal grant terms and conditions including 2 CFR Part 200 Uniform Guidance. Repeat finding: No Recommendation: We recommend the District to follow its Time and Effort Procedures For Federal Grants to ensure all Certifications are completed in accordance with policy. We also recommend the District to retain evidence of HR approvals of authorized wage rates. Views of responsible officials: There is no disagreement with the audit finding. See corrective action plan.

Corrective Action Plan

2022-004 Education Stabilization Fund ? Assistance Listing No. 84.425 Recommendation: We recommend the District to follow its Time and Effort Procedures For Federal Grants to ensure all Certifications are completed in accordance with policy. We also recommend the District to retain evidence of HR approvals of authorized wage rates. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: : In December 2022, the District updated its Time & Effort Procedures to reflect unique circumstances that might prevent the effective collection of Time & Effort logs, such as employees who separate from the district before a certification can be completed and a 90-day timeline for completion of certification when an employees? salary and benefits costs are re-coded to a Federal grant. These procedures will be reviewed annually to ensure compliance with Federal requirements. With regards to evidence related to Human Resources approvals of authorized wage rate, the District is developing a written standard operating procedure (SOP) for determining wage and salary placements and adjustments. The SOP will set forth the steps for evaluating and setting wages, including any approval process and/or required documentation. Human Resources will maintain records of all updated and approved wage rates for employees hired by the District. Name of the contact person responsible for corrective action: For Time & Effort procedures: Jon Lansa, Senior Director Grants & Federal Programs and Ricky Hernandez, Chief Financial Officer. For authorized wage rates: Jon Fernandez, Chief Human Capital Officer. Planned completion date for corrective action plan: Time and effort procedures update completed December 31, 2022. For authorized wage rates, September 30, 2023.

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 58434 2022-002
    Significant Deficiency
  • 58435 2022-003
    Significant Deficiency
  • 634876 2022-002
    Significant Deficiency
  • 634877 2022-003
    Significant Deficiency
  • 634878 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $74.61M
84.010 Title I Grants to Local Educational Agencies $27.25M
10.559 Summer Food Service Program for Children $14.78M
84.027 Special Education_grants to States $9.33M
84.367 Improving Teacher Quality State Grants $2.61M
84.287 Twenty-First Century Community Learning Centers $2.55M
10.555 National School Lunch Program $1.96M
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $1.81M
84.048 Career and Technical Education -- Basic Grants to States $1.55M
84.424 Student Support and Academic Enrichment Program $1.51M
84.041 Impact Aid $1.19M
10.565 Commodity Supplemental Food Program $1.11M
93.575 Child Care and Development Block Grant $941,446
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $896,767
84.365 English Language Acquisition State Grants $703,514
10.553 School Breakfast Program $454,582
84.377 School Improvement Grants $430,194
84.060 Indian Education_grants to Local Educational Agencies $385,833
10.558 Child and Adult Care Food Program $226,058
84.173 Special Education_preschool Grants $201,831
16.710 Public Safety Partnership and Community Policing Grants $157,773
10.582 Fresh Fruit and Vegetable Program $145,232
84.196 Education for Homeless Children and Youth $100,618
93.778 Medical Assistance Program $77,098
15.130 Indian Education_assistance to Schools $77,088
12.357 Rotc Language and Culture Training Grants $63,469
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $56,592
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $21,180
93.576 Refugee and Entrant Assistance_discretionary Grants $1,510