Finding Text
Condition: The District did not comply with the required standards of Support and Salaries and Wages as employees with time charged to the Education Stabilization Fund grants during the 2022‐2023 fiscal year did not complete monthly or semi‐annual certification forms or personnel activity reports (PAR) to verify their time distribution. Criteria: The distribution of salaries and wages is to be supported by either time certifications or personnel activity reports or other equivalent documentation which meets the standards in Subsection 8.h(5) of the OMB Circular A‐87 Part 225 Appendix B. The certification of employees who work on one cost objective must be prepared at least semi‐annually. Personnel activity reports of employees who work on multiple activities or cost objectives must be prepared at least monthly and meet certain prescribed standards, such as accounting for the employee’s total compensation, and reflecting after‐the‐fact distribution of the actual activity of each employee. The costs of such compensation are allowable to the extent that they satisfy the specific requirements of this and other appendices under 2 CFR Part 225, and that the total compensation for individual employees: (3) is determined and supported as provided in Subsection h. (8. Compensation for Personal Services A.(3).) Cause: The District did not have a process in place to ensure employees completed the required time and effort certifications and comply with the required standards noted above. Effect: It is more likely that the extent of effort charged to the various cost objectives may not be representative of the related time spent on the respective grants. Recommendation: We recommend that management require copies of payroll certification forms or personnel activity reports be completed either monthly or semi‐annually based on the specific employees charged to the grant in order to remain compliant with allowable cost requirements.