WEST SHORE SCHOOL DISTRICTLocal Government

#2021-003 Significant Deficiency in internal control over compliance - allowable costs/cost principles - time and effort reporting. Special Education - Grants to States (IDEA, Part B), CFDA #84.027 Criteria: School Districts are required to have appropriate controls over time and effort records for employees that work on federal programs. In accordance with Uniform Guidance, salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Statement of Condition: We noted that while the School District does not have written procedures for time and effort, the School District has completed certification forms for employees working on other Federal programs. These certification forms were not completed; however, to support the employees? time charged to the IDEA federal award program. Cause and Effect: Although the certifications were not completed, the School District provided additional documentation to support compliance with the time and effort requirement of the program. Therefore, we determined that salaries and benefits charged to the federal program are allowable activities. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that the School District implement written procedures over time and effort records for employees who work on federal programs. We recommend that these procedures are enforced to ensure that consistent records are maintained for all employees who work on federal programs to support the time allocated to those programs.

#2021-004 Significant Deficiency in internal control over compliance - allowable costs/cost principles (Credits). Special Education - Grants to States (IDEA, Part B), CFDA #84.027 Criteria: In accordance with the Uniform Guidance, to the extent that a non-Federal entity receives credits, they must be credited to the Federal award either as a cost reduction or cash refund, as appropriate. Statement of Condition: The School District receives retirement subsidies and did not properly reduce the retirement expenditures charged against the IDEA, Part B grant program, accordingly. Cause and Effect: The accounting records did not originally appear to reflect sufficient expenditures to support the IDEA, Part B balance as reported on the SEFA. The School District did, however, incur expenditures in excess of the grant received. The expenditures were recorded in other accounts, and the School District posted an adjustment. Identification of Repeat Finding: No Questioned Costs: None Recommendation: We recommend that the School District implement procedures to properly reduce retirement expenditures by retirement subsidies and to ensure that all IDEA, Part B expenditures are properly reflected in the general ledger to support the balance on the SEFA.

Criteria Charges for salaries and wages are to be based on records that accurately reflect the work performed. The records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition We selected all 19 employees for two pay periods and ensured agreement of time from the personnel activity reports to the accounting records. In addition, we annualized the earnings for the 19 employees and compared the totals to the accounting records. For six of the employees we noted that the salary charges were not allocated properly based on the current staffing plan or not allocated based on the correct time period due to changes in staffing during the year. Context We selected all 19 employees for two pay periods. Cause The changes were provided to the business office, but the changes were overlooked. Effect Salaries and wages were not reported properly based on updated allocation percentages and total salaries were understated for the grant. The District made all correcting adjustments. Questioned costs-None Identification as a repeat finding There was no similar finding in the prior year. Recommendations We recommend that an individual be designated to ensure all staff salary allocation change requests are properly made and those changes are recorded in the accounting records accordingly.

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION