Finding Text
2022-002 Missing Personnel Files (Material Weakness) New Finding This Year Condition: The School was unable to locate 4 of 24 personnel files selected for testing. However, essential personnel file documents were eventually located and furnished to auditors. Criteria: Part 3 Chapter 2 Section 2 of the School?s Personnel Policies states, ?The Superintendent/CEO or his or her designee shall maintain personnel records for all employees.? Section 200.334 Retention Requirements for Records of the Office of Management and Budget?s Uniform Guidance states, ?Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.? Cause: Management of the School did not adhere to written policy regarding the storage of personnel files (record retention). Effect: The School is not in adherence with written policy and in danger of not being in compliance with the Office of Management and Budget?s Uniform Guidance. Essential personnel file documents were located and furnished to auditors. Without these payroll costs charged to federal programs would have been questioned. Recommendation: Recommend adhering to adopted policies regarding the retention of personnel files. Views of Responsible Official and Planned Corrective Actions: See Corrective Action Plan. (repeat finding 2021-002) Condition: SF-425?s were not filed within 90 calendar days of the fiscal year end. Criteria: Section 200.329(c)(1) Monitoring and Reporting Program Performance of the Office of Management and Budget?s Uniform Guidance outlines the following requirement: ?The non-Federal entity must submit performance reports at the interval required by the Federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity. Intervals must be no less frequent than annually nor more frequent than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes. Reports submitted annually by the non-Federal entity and/or pass-through entity must be due no later than 90 calendar days after the reporting period. Reports submitted quarterly or semiannually must be due no later than 30 calendar days after the reporting period. Alternatively, the Federal awarding agency or pass-through entity may require annual reports before the anniversary dates of multiple year Federal awards. The final performance report submitted by the non-Federal entity and/or pass-through entity must be due no later than 120 calendar days after the period of performance end date.? Section 24(G) of the School?s Accounting Policies and Procedures Manual states, ?All financial reports to funding agencies will be submitted on a timely basis.? Section 24(D) of the School?s Accounting Policies and Procedures Manual states, ?The accountant will be responsible for preparing all financial reports accurately and on a timely basis. The accountant will also be responsible for the timely submission of the financial reports to the funding agencies.? Cause: Management of the School did not adhere to written policy. Effect: The School is not in compliance with the OMB Uniform Guidance. Recommendation: Implement adopted policies requiring the filing of SF-425?s within 90 calendar days of fiscal year end. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan.