The district received from RBT, CPA's, LLP the year-end June 30, 2022 Report on Federal Compliance Audit Report for the school district. The district is required to complete a corrective action plan within ninety (90) days of receiving the report or management letter. The corrective action plan is the response to any Management Letter Comments/Findings contained in the annual external audit report or management letter, and will be filed with the State Education Department once approved by the Board of Education. Listed below is the corrective action plan for the Management Letter comments contained in the Financial Statement for the year ended June 30, 2022: Management Letter Comment #1: Federal Program: CFDA Nos.: 84.425D Education Stabilization Fund, ESSER2, 84.425U Education Stabilization Fund, ESSER3 ARP, 84.425W Education Stabilization Fund, ESSER3 Homeless and 84.425U Education Stabilization Fund, UPK ARP Condition: The District does not comply with the required standards of Support of Salaries and Wages because employees whose time was charged to federal grants during fiscal year ending 6/30/2022 did not complete monthly or semiannual time certification forms or personnel activity reports (PAR) for their time distribution. Some employees used timesheet to support their time charges on the grants but the timesheets did not indicate the grant they were working on. Criteria: The distribution of the salaries and wages of employees are to be supported by either time certifications or personnel activity reports or equivalent documentation which meets the standards in Subsection 8.h. (5) of the 0MB Circular A-87 Part 225 Appendix B. The certification for employees who work on one cost objective must be prepared at least semi-annually. Personnel activity reports (PAR) for employees who work on multiple activities or cost objectives must be prepared at least monthly and meet certain prescribed standards, such as accounting for the employee's total compensation, and reflecting an after-the-fact distribution of the actual activity of each employee. The costs of such compensation are allowable to the extent that they satisfy the specific requirements of this and other appendices under 2 CFR Part 225, and that the total compensation for individual employees: (3) Is determined and supported as provided in Subsection h. (8. Compensation for Personal Services. A. (3).) Questioned Costs: There are no questioned costs. Effect: The District did not comply with the required standards of supports of salaries and wages. It is more likely that the extent of effort charged to the various cost objectives may not be representative of the related time devoted to the respective cost objectives. Cause: District did not have a system in place to ensure the District complied with the required standards of Support of Salaries and Wages for an employee who needed to complete monthly certifications during the fiscal year and the time sheets did not identify the grant the employee was spending time on. Recommendation: In order to prevent future occurrences of this deficiency, we recommend that management require that copies of these payroll certifications be forward to the District Treasurer on a timely basis. Perspective: This is a systematic issue in that controls over the requirement have not been developed to ensure . . issues anse. Repeat: This is not a repeat finding. Management's Response: To address this comment we have revised time sheets to reflect specific grants and have created monthly check sheets for payroll of salaried individuals whose time allocated to each grant is 1 FTE or less. To prevent future occurrences of this deficiency, management has created a checklist of employees who fall in the monthly and semi-annual payroll certification requirement, which is reconciled by the District Treasurer. This will ensure that we receive certifications on a timely basis and can quickly identify missing certifications. Implementation: January 2023