Audit 17253

FY End
2022-06-30
Total Expended
$8.96M
Findings
10
Programs
17
Organization: McComb Separate School District (MS)
Year: 2022 Accepted: 2023-06-11
Auditor: Brown CPA PLLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
12544 2022-003 Material Weakness - B
12545 2022-003 Material Weakness - B
12546 2022-003 Material Weakness - B
12547 2022-003 Material Weakness - B
12548 2022-003 Material Weakness - B
588986 2022-003 Material Weakness - B
588987 2022-003 Material Weakness - B
588988 2022-003 Material Weakness - B
588989 2022-003 Material Weakness - B
588990 2022-003 Material Weakness - B

Contacts

Name Title Type
LME3XE9RSSE7 Courtney Bershell Auditee
6016844661 Clint Brown Auditor
No contacts on file

Notes to SEFA

Title: Other Items Accounting Policies: Schedule of Expenditures of Federal Awards(1) Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the McComb Separate School District under programs of the federalgovernment for the year ended June 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofthe McComb Separate School District, it is not intended to and does not present the financialposition, changes in net position, or cash flows of the McComb Separate School District.(2) Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the same basis of accounting and the samesignificant accounting policies, as applicable, as those used for the financial statements; however,the expenditures include transfers out. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement. Negative amounts shown on the Schedule representadjustments or credits made in the normal course of business to amounts reported as expendituresin prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Donated commodities are included in the National School Lunch Program.E-rate funds have not been included on this schedule due to the fact the FCC considers the support to be in the form of providing a discount to the schools and libraries and does not consider the assistance to be direct financial support.

Finding Details

Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.
Material Weakness/Material Non-Compliance 2022-003 Finding Deficiencies in controls surrounding payroll expenditures Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost Repeat Finding: None Criteria: The school district is charged with developing controls around payroll expenditures that will provide authorization of pay through school board approval and the existence of time and attendance records. The district should also have controls, including policies and procedures, that will ensure compliance with the record-keeping requirements of the federal wage and hour law. Condition: During our testing of payroll expenditures, we noted the following exception out of a sample of twenty (20) tested: 1. Due to an error with rolling froward the year and checks being processed or allocated to the wrong fiscal year, the district could not provide accurate monthly check registers to recalculate the net pay for fourteen (14) in the sample. Due to the software error the auditor could not follow the support or proper board approvals showing the differences in actual and approved contract/budgeted pay based on the monthly check registers provided. 2. Two (2) in the sample where the district could not provide the contract or board approved budgeted amount for the employee. Cause: The district did not have adequate controls in place to ensure that payroll expenditures can be properly supported. Effect: This could cause payroll expenditures to be misstated on the financials and could lead to questioned costs. Questioned Cost: None Recommendation: We recommend the district implement internal controls to ensure all employees are properly board approved and employee payments are verified according to the board approved amounts. The district should also implement controls to ensure all employees? time records are being reconciled. Hourly employees should be docked or paid overtime, if applicable. Response: Please refer to the Auditee?s Corrective Action Plan beginning on page 76.