Finding 596719 (2022-002)

-
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2022-11-30
Audit: 23750
Organization: Epic Academy (IL)
Auditor: Krd LTD

AI Summary

  • Core Issue: Salary and wage charges for Title II program do not match the approved percentage in the grant application, leading to questioned costs of $416.00.
  • Impacted Requirements: Compliance with 2 CFR 200.430 and 200.431 is necessary to ensure accurate and allowable salary allocations.
  • Recommended Follow-Up: Implement effective controls for salary documentation and ensure all changes to budgets are approved and recorded to avoid future discrepancies.

Finding Text

Assistance Listing Number: 84.367 Program Title: Title II Improving Teacher Quality - Staff Development Federal Award Number: Not applicable Federal Award Year: 2021/2022 Pass Through Entity: Chicago Public Schools Criteria or specific requirement ? Per 2 CFR 200.430 (a) and 200.431 (a), charges to Federal awards for salaries and wages (may also include benefits) must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The percent of compensation for personnel services paid currently to employees rendered during the period of performance under the federal award, cannot exceed the percentage of costs approved in the consolidated grants application. Condition ? Title I wages and salaries (including benefits if applicable) paid currently does not equal (is less or greater than) the percentage of personnel costs approved in the grant. Questioned costs ? $416.00 Context ? Monitoring activities were conducted based on a questionnaire developed to help determine whether the appropriate program and fiscal components were in place and documentation maintained was on file as per grant requirements. The review consisted of examining records on file at the school, classroom observations, reviewing the school's organizational chart, and discussions with school staff, the principal and/or principal's designee. Cause ? This finding occurred, in part, due to employee turnover in the past year. There were no controls in place to ensure that all administrative requirements were met, and proper reviews and procedures were not being used for expenses that flow into the claim reimbursement. Effect - Without the proper review controls, there is a heightened risk that the Organization's report may not be accurate and could lead to funds having to be returned. Repeat Finding: No Recommendation ? Effective control and accountability must be maintained for all funds. Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, according to 2 CFR 200.62, 200.302, and 200.303. Per 2 CFR 200.308 (b), recipients are required to report deviations from budget or project scope or objective, and request prior approval from the federal awarding agency. Copies of approved amendment(s) must be maintained on file to support any changes to the original approved application. For all unallowable claimed expenditures, funds must be returned to the Board to comply with Federal reporting requirements per 2 CFR 200.410. The school administrator is required to submit a claims adjustment in Oracle to start this process. View of Responsible Officials - Management agrees with the finding and is implementing a corrective action plan in November 2022.

Categories

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management Period of Performance Reporting

Other Findings in this Audit

  • 20277 2022-002
    -
  • 20278 2022-001
    Significant Deficiency
  • 596720 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $394,125
84.425 Education Stabilization Fund $124,712
84.367 Improving Teacher Quality State Grants $13,000
84.424 Student Support and Academic Enrichment Program $3,900