Finding 971090 (2022-003)

U.S. Department of Education COVID‐19 Governor’s Emergency Education Relief (GEER) CFDA #84.425C Activities Allowed Allowable Costs Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: A complete system of internal controls requires all expenditures to be properly approved and supported by appropriate documentation. In addition, all expenditures charged to the federal programs are required to be allowable costs under the program and allocated in accordance with CFA’s cost allocation plan. Condition: One out of 15 payroll expenditures tested lacked the required support to show that hours billed by program employees were allocated in accordance with actual time spent rather than predetermined budgeted amounts. Cause: Due to an oversight by CFA, documentation was not retained supporting actual time spent. Effect: Improper expenses may be charged to the federal program or charged at the wrong amount. Questioned Costs: $228 Context/Sampling: A nonstatistical sample of 60 transactions out of 361 total transactions were selected for testing which accounted for $62,746 of $819,086 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend CFA require all documentation surrounding time spent on programs be retained. Views of Responsible Officials: Management agrees with the finding.