Finding 7280 (2022-006)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2024-01-04

AI Summary

  • Core Issue: The Dallas County Board of Education lacks proper internal controls for documenting personnel expenses related to federal awards.
  • Impacted Requirements: Compliance with 2 CFR 200.430(i) is not met, as timesheets lack necessary approvals, salary payments are unsupported, and required time and effort reports are missing.
  • Recommended Follow-up: Implement a system to ensure all timesheets are approved, verify salary payments against approved schedules, and complete semiannual certifications for employees working on federal programs.

Finding Text

Title 2 U. S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), 2 CFR 200.430(i) outlines the standards for appropriate documentation of personnel expenses. The current standards require that charges to Federal awards for salaries and wages are based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurance the charges are accurate, allowable and properly allocated. In addition, semiannual certifications of time and effort spent working on federal programs are required for employees working on a single cost objective or employees whose salary is supported by only one federal program to document the personnel expenses. During the testing of time and attendance records of employees paid from the Education Stabilization Fund, the following problems were noted: • Timesheet or payroll service reports for twelve of the fourteen employees tested were not approved by the appropriate Principal, Director or Supervisor, as applicable. • Documentation was not provided to support that five of the fourteen employees tested were paid in accordance with the approved salary or stipend schedules. • Time and effort reports were not provided for any of the fourteen employees tested to document personnel charges to the federal programs. The Dallas County Board of Education (the “Board”) did not have internal controls in place to ensure all timesheets were properly approved, employees were paid in accordance with approved salary schedules and semiannual certifications of time and effort spent working on the federal programs were properly completed. As a result, the Board is not in compliance with the Uniform Guidance documentation requirements for personnel services charged to the Education Stabilization Fund.

Corrective Action Plan

A policy will be developed and submitted for board approval outlinging the payroll internal control processes as it relates to timesheets, payroll service reports, and approval process. Newly adopted written procedures will be developed to align with the newly adopted board policy. The following district office staff members will participate in training provided by a private consultant ont he newly adopted policy and procedures along with the required process for documenting all personnel services charged by Education Stabilization Fund: CSFO, Federal Programs Bookkeeper, Federal Programs Secretary, Centralized LSA Bookkeeper, State Funds Bookkeeper 2, Accounts Payable Clerk, and Payroll Clerk. The CSFO will develop a turn-around training and trail all school level staff to include bookkeepers and principals on the following topics: Completing and documenting time and effort sheets, properly documenting and affirming salaries of Education Stabilization Fund employees, checks and balances for payroll and timesheets, adhering to board approved policies and procedures for completing timesheets, signing timesheets, and balancing timesheets against payroll service reports. An internal audit team will be developed to periodically check compliance to newly adopted policies and procedures. All time and effort sheets will be submitted at the onset of employment for review and compliance with a follow up mid-year certification of time and effort on the federal programs.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 7281 2022-007
    Significant Deficiency
  • 7282 2022-007
    Significant Deficiency
  • 7283 2022-007
    Significant Deficiency
  • 7284 2022-007
    Significant Deficiency
  • 583722 2022-006
    Material Weakness
  • 583723 2022-007
    Significant Deficiency
  • 583724 2022-007
    Significant Deficiency
  • 583725 2022-007
    Significant Deficiency
  • 583726 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $3.99M
10.553 School Breakfast Program $588,554
84.424 Student Support and Academic Enrichment Program $292,827
84.367 Supporting Effective Instruction State Grants $238,458
84.287 Twenty-First Century Community Learning Centers $200,331
10.555 National School Lunch Program $184,806
10.582 Fresh Fruit and Vegetable Program $85,740
84.027 Special Education_grants to States $80,236
32.009 Emergency Connectivity Fund Program $78,994
84.048 Career and Technical Education -- Basic Grants to States $73,885
12.U01 Reserve Officers Training Corps $67,245
84.358 Rural Education $65,875
84.196 Education for Homeless Children and Youth $40,959
84.425 Education Stabilization Fund $34,839
10.558 Child and Adult Care Food Program $34,733
10.560 State Administrative Expenses for Child Nutrition $7,750
10.649 Pandemic Ebt Administrative Costs $1,926
84.173 Special Education_preschool Grants $1,335
96.001 Social Security_disability Insurance $1,120