Finding 618756 (2022-005)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-16

AI Summary

  • Core Issue: There was a significant deficiency in internal controls over time and effort documentation for the Education Stabilization Fund, with three payroll entries lacking necessary Biannual Certifications.
  • Impacted Requirements: Compliance with 2 C.F.R. § 200.430, which mandates that salary charges to federal awards must be supported by accurate records and internal controls.
  • Recommended Follow-Up: Implement a tracking system for payroll disbursements and conduct biannual reviews to ensure all required Biannual Certifications are obtained moving forward.

Finding Text

2022-005 Time and Effort Documentation Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425C/84.425D/84.425U/84.425W Federal Award Identification Number and Year: N/A Pass-Through Agency: New Mexico Public Education Department Pass-Through Number(s): 24301/24308/24355 Award Period: July 1, 2021-June 30, 2022 Type of Finding: -Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Per 2 C.F.R. ? 200.430 Compensation - personal services: charges to Federal awards for salaries and wages must be based on records that comply with the established accounting policies and procedures of the non-Federal entity and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated and reasonably reflect the total activity for which the employee is compensated by the non- Federal entity. Condition: During our audit of the Education Stabilization Fund program, we noted the following: -Out of 40 payroll selections tested, three selections were not supported by a Biannual Certification necessary for Time and Effort documentation. Questioned costs: None. Context: See ?Condition.? Cause: Management oversight. Effect: Noncompliance with applicable grant regulations and District Policy. Recommendation: We recommend tracking employees that have payroll disbursements charged to the grant and performing a review twice a year to ensure the Biannual Certifications are obtained for all employees that are required to submit one. Views of responsible officials: The Data Specialist position in the Federal Programs Department was vacant during the time of Biannual certification period and these 3 selections were unintentionally not included in the Biannual Certification necessary for Time and Effort documentation. The Federal Programs Department conducts a review twice a year and will continue to do so with more diligence to detail. When the position is filled, Executive Director of Federal Programs will ensure this individual is properly trained on the reporting procedures and will verify that all reports are completed correctly and in a timely manner before signing. The Executive Director of Federal Programs will ensure the corrective action plan is implemented in the next Biannual Certification period of January 2023.

Categories

Internal Control / Segregation of Duties Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 42314 2022-005
    Significant Deficiency
  • 42315 2022-006
    Significant Deficiency
  • 42316 2022-007
    Significant Deficiency
  • 618757 2022-006
    Significant Deficiency
  • 618758 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $10.58M
84.010 Title I Grants to Local Educational Agencies $8.29M
10.553 School Breakfast Program $4.71M
93.600 Head Start $3.90M
10.565 Commodity Supplemental Food Program $1.45M
84.367 Improving Teacher Quality State Grants $1.15M
84.371 Striving Readers $1.08M
84.424 Student Support and Academic Enrichment Program $668,491
10.582 Fresh Fruit and Vegetable Program $534,043
84.365 English Language Acquisition State Grants $253,544
10.556 Special Milk Program for Children $176,733
84.173 Special Education_preschool Grants $175,669
84.048 Career and Technical Education -- Basic Grants to States $103,667
84.011 Migrant Education_state Grant Program $70,957
84.425 Education Stabilization Fund $58,434
93.667 Social Services Block Grant $54,545
20.205 Highway Planning and Construction $47,333
84.196 Education for Homeless Children and Youth $29,802
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $16,194
84.027 Special Education_grants to States $3,691