Finding Text
Criteria: The principles for determining allowability of costs charged to federal grants are outlined in the federal regulations, 2CFR Part 200, Subpart E. Condition: The District recorded 100% of retirement expenditures for employees when the District receives reimbursement from the State for approximately 50% of its retirement expenditures. Cause: The District failed to back out the portion of the retirement expenditures that are reimbursed or subsidized by the State. Effect: The District has received reimbursement via state and federal subsidies for the same retirement expenditures. Context: We calculated the allowable retirement expenditures by multiplying the gross salaries recorded to the federal program(s) by the PSERS employer rate and then deducted 50% for the amount reimbursed by the State and compared that total to the amount of actual retirement expenditures recorded to the federal program(s). Recommendation: We have advised management to implement procedures to ensure only the unreimbursed retirement expenditures are allocated to federal programs. Views of Responsible Officials: The District agrees with the finding and will develop procedures to ensure only 50% of retirement expenditures are recorded to federal programs. Audit Follow Up Procedures: We performed follow-up procedures on prior year findings, as reported in the Schedule of Prior Year Findings.