East Newark Borough School District

Finding 2022-002 Information on the state program: CARES Emergency Relief Grant and American Rescue Plan, CFDA 84.425D/U Grant Period 3/13/20-10/15/22, and 3/13/20-9/30/23. Criteria or specific requirement: The school district must apply the payroll of employees whose salaries are partially or fully funded by the program to the grant budget line throughout the course of the year. Condition: The district charged salaries and wages to the program via a year-end adjustment rather than charging the applicable amounts by pay period. Questioned Costs: None Context: The district did not apply employee salaries to the program budget line(s) throughout the course of the year. Effect: By not applying employee salaries to the program budget line(s) throughout the course of the year, it is not possible to identify the payroll periods being charged to the program and it is not possible to verify the individuals being charged to the program. Cause: The district charged salaries and wages to the program via a year-end adjustment rather than charging the applicable amounts by pay period. Recommendation: The district should apply employee salaries to the grant budget line(s) in conjunction with the employees being compensated through the payroll system for their time and effort contributed to the program. In addition, the district should maintain documentation that shows the distribution of salary and wages charged to grant awards based on actual employee activity as reflected in personnel activity reports, prepared after-the-fact, that include the total activity for which employees were compensated. Management?s response: The district will apply employee salaries to the grant budget line throughout the course of the year.