Finding 592967 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-05-11

AI Summary

  • Core Issue: The Foster-Glocester Regional School District failed to complete required semi-annual certifications for employees working on Federal grants, violating its own policy.
  • Impacted Requirements: This deficiency relates to compliance with 2 CFR Part 200 Subpart E, specifically regarding documentation for employee compensation on Federal awards.
  • Recommended Follow-Up: The School District should implement proper time and effort reporting procedures immediately, with oversight from the new financial manager, to ensure compliance by September 1, 2023.

Finding Text

SIGNIFICANT DEFICIENCY Finding: 2022-004 Agency: U.S. Department of Education Program: Elementary and Secondary School Emergency Relief (ESSER) Fund Federal Assistance Listing Number: 84.425D ALLOWABLE COSTS/COST PRINCIPLES Criteria: 2 CFR Part 200 Subpart E, Cost Principles, states that compensation for employees engaged in work on Federal awards must be documented as provided in 2 CFR Section 200.430(i). Although 2 CFR Section 200.430(i) does not specifically require semi-annual certifications, the Foster-Glocester Regional School District has a policy in place for time and effort reporting on Federal grant programs. The policy requires semi-annual certifications for employees charged to Federal grants working on a single cost objective. Condition: During our test of controls over compliance with allowable costs/cost principles requirements, we noted that the required semi-annual certifications were not completed for employees working on a single cost objective during fiscal year 2022. Cause: The School District did not follow its established time and effort reporting policies and procedures. Effect: The School District did not have the required documentation on file for employees charged to a single cost objective in conformance with the School District?s policy. Questioned Costs: None Recommendation: We recommend that the School District follow established time and effort reporting procedures to ensure that proper documentation is maintained for employees engaged in work on Federal grant programs. Corrective Action/Auditee Views: The District?s payroll process is significantly lacking proper control procedures. With the hiring of a new financial manager, policies, procedures and controls will be implemented immediately, including the proper tracking of time and effort for employees charged to federal grants as required. Anticipated Completion Date: September 1, 2023 Contact Person: Amanda Raymond, Director of Finance

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 16525 2022-004
    Significant Deficiency
  • 16526 2022-003
    Significant Deficiency
  • 592968 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $810,000
84.027 Special Education_grants to States $529,936
84.425 Education Stabilization Fund $507,169
10.553 School Breakfast Program $220,784
84.010 Title I Grants to Local Educational Agencies $160,699
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $64,923
10.559 Summer Food Service Program for Children $46,155
84.367 Improving Teacher Quality State Grants $44,987
84.048 Career and Technical Education -- Basic Grants to States $36,112
10.555 National School Lunch Program $21,831
84.424 Student Support and Academic Enrichment Program $8,131