Finding 6062 (2023-006)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2023-12-21

AI Summary

  • Core Issue: Unallowable salary costs of $27,980 were charged to the U.S. Department of Education grant due to misinterpretation of allowable expenses.
  • Impacted Requirements: Compliance with 2 CFR Part 200 regulations regarding Allowable Costs/Cost Principles was not met.
  • Recommended Follow-Up: Regularly review grant documents and regulations to ensure only allowable costs are charged, preventing future errors.

Finding Text

Information on Federal Program: U.S. Department of Education (Twenty-First Century Community Learning Centers, 84.287), passed through the New York State Education Department. Condition: During our testing of payroll expenditures charged to this program, it was noted that salaries were being charged that were not allowable under the grant. Criteria: Compliance under 2 CFR Part 200, Subpart E §200.403 and 200.404 under compliance requirement Allowable Costs/Cost Principles. Cause: While the District had policies in place for documentation of time and effort of salaries charged to the grant, there was a misinterpretation of the allowable costs relating to salaries being charged. Effect: Costs were charged to the grant that were unallowable in the amount of $27,980. After management discussed the specific situation with the Fiscal Manager who approved the District’s grant, management received approval to move these costs to cover allowable payroll costs the District incurred, that were allowable under the grant and not reimbursed under any other federal grants. These funds were therefore not fully required to be returned. Questioned Costs: None Perspective Information/Context: As part of testing compliance, a selection of employees charged to the grants was tested for compliance with applicable direct and material compliance requirements. Of the 40 individuals selected for testing, one employee’s time charged to the grant was for hours worked during the school day. For these specific tasks, the grant only allows for reimbursement if the time worked is outside of school hours. Therefore, the time that was related to work performed during school hours was deemed unallowable due to the time the work was performed, not the tasks being performed. This is also the first year the District received this funding. Identification of Repeat Finding: No Recommendation: We recommend that grant documents and regulations be reviewed regularly to ensure a clear understanding of the allowable costs, to ensure only allowable costs are charged to the grant at the time costs are incurred. District Response: The District acknowledges the finding regarding the unallowed costs associated with the 21st CCLC Grant. During the audit process, we found that salary costs within this grant were included in error and should not have been. We have contacted both the fiscal department for 21st CCLC and NYSED Grants Finance, in hopes to correct this issue. We adjusted the FS10F report for final expenses and copies are being sent out to the appropriate departments for correction. This issue should be resolved by January 2024 and will be implemented by the Business Manager, Christopher Karwiel.

Corrective Action Plan

The District acknowledges the finding regarding the unallowed costs associated with the 21st CCLC Grant. During the audit process, we found that salary costs within this grant were included in error and should not have been. We have contacted both the fiscal department for 21st CCLC and NYSED Grants Finance, in hopes to correct this issue. We adjusted the FS10F report for final expenses and copies are being sent out to the appropriate departments for correction. This issue should be resolved by January 2024 and will be implemented by the Business Manager, Christopher Karwiel.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 582504 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $336,469
84.010 Title I Grants to Local Educational Agencies $269,517
84.425 Education Stabilization Fund $192,332
84.173 Special Education_preschool Grants $14,470
84.367 Improving Teacher Quality State Grants $12,168
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $1,612