Finding Text
Finding 2023-001
Information on the federal program:
Title I, Part A – Improving Basic Programs; Title I, SIA – Reallocated; Title I SIA, Part A – Improving Basic Programs, CFDA #84.010A, Grant Period 7/1/22 – 6/30/23
Compliance/Internal Control over Compliance:
Allowable Costs/Cost Principles
Criteria or specific requirement:
As per UGG §200.430, Compensation – personal services, the Palisades Park Board of Education must approve personnel partially or fully funded by Title I monies via Board Resolution. The Board Resolution must state the Title I funded personnel’s name, salary, work location, and the funding percentage for each program.
Condition:
The District did not prepare Board Resolutions that approved all Title I funded personnel in the above described format.
Questioned Costs:
Unknown
Context:
Based on the results of our audit testing, we noted that the District was required to prepare and submit the Board Resolutions as described above. However, it was noted that not all resolutions detailed the employee and the allocation of their compensation to be funded through Title I funding.
Effect:
The District is not in compliance with federal requirements regarding allowable costs/cost principles. Ineffective controls to monitor program requirements could result in inaccurate information, increase the risk of non-compliance and exposes the Board of Education to the risk of loss of funding. Cause:
The Palisades Park Board of Education was unable to provide or did not prepare Board Resolutions that approved all Title I funded personnel.
Recommendation:
The Palisades Park Board of Education should implement policies and procedures to ensure that all employees participating in the Title I program are approved via Board Resolution, and that the Board Resolution stipulates the partial or full funding of the employees’ salaries through the distribution of Title I monies.
Management’s response:
The Palisades Park Board of Education will ensure that all required allowable cost/cost principle requirements are met by approving, via Board Resolution, the employee, their position and the allocation of their compensation to be paid by the applicable Title I allocation.