Finding 8191 (2023-001)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-01-10
Audit: 10748
Auditor: Sensiba LLP

AI Summary

  • Core Issue: The district charged prior period wages to the program without federal approval, violating cost principles.
  • Impacted Requirements: Costs must be incurred within the approved budget period to be allowable under federal awards.
  • Recommended Follow-Up: Establish formal policies to ensure all charges are within the budget period and obtain waivers for prior year costs when necessary.

Finding Text

AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019, Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B –Cost Principles. Criteria: Except where otherwise authorized by statute, costs must be incurred in the approved budget period in order to be allowable under Federal awards. Federal agencies may approve waivers to charge prior period costs using carry over funding. Condition: The district charged prior period wages and associated payroll costs to the program. The District did not apply for or receive a waiver from the federal agency. Cause: The District did not request a waiver from the federal agency approving the prior year costs prior to charging the program for the costs. Effect: Wages allocated to the program were not in the current approved budget period. Questioned cost: Wages, including associated payroll costs, totaled $35,844. The amount was calculated based on the total amount charged to the program which was in excess of the employee’s wage allocation to the program for the year ended June 30, 2023. Context: The error was isolated to one employees’ wage and associated payroll cost allocation. Recommendation: We recommend the District implement formal written policies for ensuring that all charges to federal programs be limited to those incurred in the current budget period. If management identifies a need to use carry over funds by charging prior year allowable expenses, permission should be obtained from the federal granting agency prior to such charge. Views of responsible officials: The District agrees with this finding and has requested a waiver from the granting agency. Processes will be reviewed, and any necessary changes will be implemented to ensure all wages are correctly allocated within the budget year

Corrective Action Plan

Description of Finding: The District charged prior period wages and associated payroll costs to the High School Equivalency Program award. While the costs are allowable and within the grant period, a waiver from the federal agency allowing prior-year costs was not obtained. This results in a questioned cost of $35,844. Statement of Concurrence: The District agrees with this finding. Corrective Action: We have communicated with the federal agency overseeing this grant, and have requested approval and a documented waiver. This is currently being reviewed by the agency. We believe that these questioned costs are allowable and in line with the requirements of the grant. If the requested waiver is denied, the District will utilize alternative funding to cover the questioned costs. Projected Completion Date: We expect this matter to be resolved by the end of January 2024.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 8192 2023-002
    Significant Deficiency
  • 8193 2023-003
    Significant Deficiency
  • 584633 2023-001
    -
  • 584634 2023-002
    Significant Deficiency
  • 584635 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.141 Migrant Education_high School Equivalency Program $352,425
84.181 Special Education-Grants for Infants and Families $268,019
93.778 Medical Assistance Program $219,739
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $213,227
84.173 Special Education_preschool Grants $140,196
84.215 Fund for the Improvement of Education $124,179
84.184 Safe and Drug-Free Schools and Communities_national Programs $99,274
93.434 Every Student Succeeds Act/preschool Development Grants $92,000
84.196 Education for Homeless Children and Youth $59,305
84.015 National Resource Centers Program for Foreign Language and Area Studies Or Foreign Language and International Studies Program and Foreign Language and Area Studies Fellowship Program $52,670
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $42,659
93.556 Promoting Safe and Stable Families $39,358
84.425 Education Stabilization Fund $34,619
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $23,294
84.027 Special Education_grants to States $22,181
84.048 Career and Technical Education -- Basic Grants to States $19,065
84.010 Title I Grants to Local Educational Agencies $9,209
84.011 Migrant Education_state Grant Program $5,243
93.136 Injury Prevention and Control Research and State and Community Based Programs $732