06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30,2004 ' C. Findings and Questioned Costs-Major Federal Award Programs Audit , DEPARTMENT OF EDUCATION ' Reportable Condition Considered to be a Material Weakness 04-1 Special Education Cluster-CFDA No.'s 84.027 and 84.173;Fiscal year ended June 30,2004 ' Condition and Criteria: Program management does not maintain the required documentation related to the support of salaries and wages(for employees that work on both Special Education Cluster programs and other non-grant related activities)as prescribed in OMB Circular A-87, Cost Principals for State, Local and Indian Tribal Governments. Procedures to ensure accountability for authorization of federal grant charges must be in place to determine allowable costs and cost principles. , Cause: Procedures are not in place to accumulate the required documentation. Effect: As a result of the required documentation not being maintained,the salary charges are subject to ' disallowance and,therefore,are considered a questioned cost. Questioned Costs: Questioned salary costs charged to the grants total$74,887. This is considered material ' to the programs. Auditor's Recommendation: Procedures must be implemented to ensure that appropriate supporting ' documentation is maintained and program management is aware of all compliance requirements of its major programs,including the allowable cost/cost principles requirements noted above. For employees that work on both Special Education Cluster programs and other non-grant related ' activities,personnel activity reports must be maintained that(1)reflect an after-the-fact distribution of the actual activity of the employee,(2)account for the total activity for which the employee is compensated, ' (3)are prepared at least monthly and coincide with one or more pay periods,and(4)must be signed by the employee. Grantee Response: ' The Town of Mashpee School Department will ensure that a corrective action plan.is in place by June 30, 2005 for this finding. The actual recommended documentation procedure related to support of salaries and wages and program management awareness will be in place by March 30,2006. Other Findings ' 04-2 Special Education Cluster-CFDA No.'s 84.027 and 84.173;Fiscal year ended June 30,2004 , Condition and Criteria:The financial reports submitted to the Massachusetts Department of Education were not completed based upon expenditures processed and recorded in the Towns general ledger and, therefore,did not represent an accurate,current and complete disclosure of financial results. This condition is a violation of the financial reporting requirements prescribed in Section 20 of the OMB Common Rule. , Cause: Policies and procedures are not in place to reconcile financial reports to the general ledger prior to submission. Town of Mashpee,Massachusetts 9 Reports on Federal Award Programs '