Finding Text
Federal Program Affected Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education (CDE) Program Name: Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Compliance Requirement: A/B (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. A semi-annual certification may be completed if 100% of an employee?s time if charged to one Federal award. Conditions The District uses the HRA form to document the administrator?s approval to charge employee costs to specific accounts, including those for restricted funds. We noted the following: ? HRAs for two of the 31 employees selected for the test of payroll charged to ESF did not include the resource code to which the employees were charged. ? One HRA did not document the employee?s authorized step and column placement on the salary schedule. ? The salary paid an employee was not properly documented on the HRA and could not be traced to a salary schedule. The District did not have sufficient controls in place to ensure that employees who were charged to Education Stabilization Fund programs completed time accounting documentation in accordance with federal requirements. The District was not able to provide time accounting documentation for one of 31 employees selected for testing. Questioned Costs There were no questioned costs associated with the identified condition. Context The condition was identified through inquiry with District personnel and through review of available supporting documentation. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii). Cause The condition identified appears to have materialized due to the District?s lack of established procedures to ensure compliance with the requirements under Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii). Repeat Finding No. Recommendation The District should review the requirements stated in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii) and implement a procedure to address the control deficiency currently identified with the District?s time accounting documentation as it relates to employees working on multiple activities or cost objectives.