Finding 589062 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-02-02
Audit: 17509
Organization: Canton City School District (OH)

AI Summary

  • Core Issue: Two employees charged to Title I funds were not on the approved grants list, indicating a lack of proper documentation and controls.
  • Impacted Requirements: Compliance with 2 C.F.R. regulations on allowable costs and accurate payroll documentation is at risk.
  • Recommended Follow-Up: The School District should assess and improve its controls to ensure accurate documentation and compliance with funding requirements.

Finding Text

3. FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS Finding Number 2022-001 CFDA Title and Number Title I Grants to Local Educational Agencies ? 84.010A Federal Award Number / Year 2022 Federal Agency U.S. Department of Education Pass-Through Agency Ohio Department of Education Significant Deficiency ? Allowable Costs/Cost Principles Criteria: 2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 C.F.R. ? 200.430(a) which provides, in part, that costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities. In addition, 2 C.F.R. ? 200.430(h) )(8)(i)(1)(i-iii) states, in part, 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; be incorporated into the official records of the non-Federal entity; and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition: We performed a test of controls over allowable costs/cost principles for payroll expenditures charged during fiscal year 2022. Through testing and risk assessment, it was noted that two employees paid from Title I funds that were not on the approved grants listing provided by the grants coordinator. Cause: The School District did not implement policies and procedures to ensure complete and accurate standards for documentation of personnel expenses. Effect: The result of this is an increased risk of non-compliance related to allowable costs and cost principles. Recommendation: We recommend the School District evaluate applicable controls and determine why they were ineffective in preventing non-compliance. Rounds of revisions without clear and effective communication as to the changes made to the listing noted as an area that can be improved upon. School District?s Response: See Corrective Action Plan.

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 12620 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $11.39M
84.027 Special Education_grants to States $2.08M
10.553 School Breakfast Program $1.87M
84.367 Improving Teacher Quality State Grants $818,405
84.424 Student Support and Academic Enrichment Program $668,797
10.555 National School Lunch Program $631,498
84.268 Federal Direct Student Loans $492,958
84.002 Adult Education - Basic Grants to States $477,926
84.287 Twenty-First Century Community Learning Centers $443,901
84.048 Career and Technical Education -- Basic Grants to States $421,694
32.009 Emergency Connectivity Fund Program $391,994
84.063 Federal Pell Grant Program $320,456
84.196 Education for Homeless Children and Youth $119,524
84.371 Striving Readers $108,589
84.377 School Improvement Grants $81,644
84.365 English Language Acquisition State Grants $55,838
10.558 Child and Adult Care Food Program $49,082
21.019 Coronavirus Relief Fund $36,026
14.218 Community Development Block Grants/entitlement Grants $32,123
84.173 Special Education_preschool Grants $31,465
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,163
84.323 Special Education - State Personnel Development $14,782
84.425 Education Stabilization Fund $10,482
10.649 Pandemic Ebt Administrative Costs $5,814