Blanchester Local School DistrictLocal Government

2 C.F.R. ? 3474.1 gives regulatory effect to the Department of Education for 2 CFR 200.403 (g) which provides that except where otherwise authorized by statute, costs must be adequately documented in order to be allowable under Federal awards. Further, 2 C.F.R ? 200.303(a) provides that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The School District has established approved rates of pay for employees. Further, timesheets and/or single funded certificates was used to document time and effort of personnel relating to Title I activities. However, in the current year the employees were to be moved from the Title I program and did not complete timesheets/single funded certificates, which resulted in an estimated amount of $127,443 in Title I expenditures that could not be supported as related to Title I activities. As such, the $127,443 from the Title I Fund AL # 84.010 is considered a questioned cost. Failure to make corrections to employess and maintain the appropriate time and effort documentation resulted in questioned costs and can result in reduced future federal funding or the requirement to repay the Ohio Department of Education. The Treasurer should ensure all employees charging salaries and benefits to federal grants are allowable under the current year program and maintain the appropriate documentation supporting the time spent on the grant, in accordance with the School District?s policy.