Finding Text
Criteria or Specific Requirement Allowable Costs/Cost Principles ? Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430(i) indicates that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition An employee that was hired to work in an allowable position subsequently accepted another position within the District. The District paid the employee from August 2021 through January 2022 charging the cost to the federal award. The unallowed charge was discovered when the employee was asked to complete the semi-annual certification. Cause When it was discovered, the District noted that a correction should be made to remove the payroll cost charged, but due to a breakdown in the internal controls, the correction was not made. District personnel failed to follow through on the required paperwork. Effect or Potential Effect The error resulted in an overstatement of revenue requested for the ESSER award. Expenditures of special revenue fund were overstatement and expenditures of general fund were understated. There was also a misstatement of the amounts due to/from other funds. Questioned Cost Salary and benefits charged to federal award $53,239. Identification as a Repeat Finding This a not a repeat finding. Recommendation The District should return the funds to the Wyoming Department of Education. The District needs to revisit internal control processes regarding verification of employees being charged to federal awards throughout the award period rather than just when requesting semi-annual certifications. The District needs to review the monitoring process to ensure that when an adjusting entries is noted as being required that follow through happens to complete the process, in a timely manner. View of Responsible Officials Please refer to the District?s Corrective Action Plan.