Finding Text
2022-001: U.S. Department of EducationSpecial Education Cluster (IDEA):Special Education - Grants to States, CFDA 84.027Special Education - Preschool Grants, CFDA 84.173Allowable Costs/Cost PrinciplesSignificant Deficiency in Internal Control Over ComplianceGrant AwardNumber:Affects all grant awards included in the Special Education Cluster (IDEA)under CFDA 84.027 and 84.173 on the Schedule of Expenditure of FederalAwards passed through the State of Nevada Department of Education.Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform guidance) requires that charges to federal awardsfor salaries and wages be based on records that accurately reflect the workperformed and that the system of internal controls include processes toensure that time was spent consistent with the planned allocation.Condition, Cause,and Effect/ PotentialEffect:The District did not maintain evidence of internal control procedures relatedto ensuring that time actually spent on Local Plan, grant award 22-639-07000, was consistent with the planned activities for those individuals whostarted work on the project during the school year, which could result inunallowable costs being charged to the grant.Questioned Costs: None noted.Context: Based on a nonstatistical sample of all 24 employees whose salary and wagecosts were charge to the Local Plan, we found that the District did notmaintain documentation to support their review of actual time spent on theprogram for four of the employees. In all such cases, the employee beganwork on the program at some point after the first payroll of the year.Repeat Finding fromPrior Year: NoRecommendation: We recommend the District enhance control procedures to ensure that allpayroll charges to federal grants are reviewed and documented to ensure thattime charged to grants was consistent with the planned allocation.Views of ResponsibleOfficials:Management agrees with this finding and will review the internal controlsover payroll charge documentation.