Finding Text
2022-001 50000 Allowable Cost and Costs Principles (Material Weakness, Noncompliance)
Federal Program Affected
Program Name: Title I, Part A
Assistance Listing Number: 84.010
Pass-through Entity: California Department of Education
Federal Agency: U.S. Department of Education
Criteria or Specific Requirements
Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1)(vii), charges to
Federal awards for salaries and wages must be based on records that accurately reflect the work
performed. These records must support the distribution of the employee’s salary or wages among
specific activities or cost objectives if the employee works on more than one Federal award; a Federal
award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect
activities which are allocated using different allocation bases; or an unallowable activity and a direct or
indirect cost activity.
Condition
The Organization did not have sufficient controls in place to ensure that employees working on multiple
activities or cost objectives maintain time accounting documentation in accordance with Federal
requirements.
Questioned Costs
There were no direct questioned costs associated with the condition identified. However, the salaries
charged without adequate time accounting documentation totaled $747,565.
Context/Sampling
A non-statistical sample of 40 transactions out of 1,351 total transactions were selected for testing,
which accounted for $795,265 of $935,043 of federal program expenditures.
Effect
The Organization has not complied with the requirements identified in Title 2, Code of Federal
Regulations, Part 200, Subpart E, Section 200.430 (i)(1)(vii).
Cause
The condition identified appears to have materialized due to the Organization’s lack of established
procedures to ensure compliance with the requirements under Title 2, Code of Federal Regulations,
Part 200, Subpart E, Section 200.430 (i)(1)(vii).
Repeat Finding
No.
Recommendation
The Organization should review the requirements stated in Title 2, Code of Federal Regulations,
Part 200, Subpart E, Section 200.439 and implement a procedure to address the deficiency currently
identified.
Corrective Action Plan and Views of Responsible Officials
The Organization has developed an action plan to conduct time studies on staff working in program
areas supported with federal funding resources. Staff training will be provided to the departments on
proper payroll documentation. Time studies will be conducted twice annually. Proper documentation of
allowable payroll expenditures will be submitted monthly. Signed documents will be retained on file by
the department.