Finding 7311 (2022-001)

2022-001 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Criteria: Funds spent under the grant must be allowed under Title 2 U.S. Code of Federal Regulations Part 200 Subpart E, Cost Principles (“Cost Principles”). Condition: During the course of the auditing procedures, we noted the Association charged the grant direct costs for certain administrative staff without having supporting records reflecting the distribution of these costs to the grant. Questioned costs: $738,000 Context: Of the payroll expenditure population for the grant, totaling approximately $1,645,000, certain administrative staff salaries of approximately $738,000 were allocated and charged to the grant. Effect: The costs do not meet the criteria for charging direct salaries and wages due to not having proper documentation supporting the allocations made. Cause: Due to an ineffective review process of the costs charged to ensure they are properly supported as required under the Uniform Guidance. Recommendation: Management should implement a process to ensure all costs charged to the grant follow Cost Principles and any direct charges to the grant for salaries and wages be properly supported with timesheets supporting the charges. Grantee Comment: Refer to Corrective Action Plan Summary