Audit 21927

Federal program Education Stabilization Fund ? 84.425D Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Costs should be supported by adequate documentation and should be correctly charged as to account, amount, and period. Condition During testing, it was discovered that five of the six non-substitute employees tested did not have a correct amount of wages moved to the ESSER fund. Context Gross wages were rounded up to the nearest whole dollar, which resulted in small variances between the actual amount and the amount claimed. One employee was claimed for $10 too much, which is thought to be the result of a typo during entry. Another employee?s wages were claimed for $100 too much, which was the result of errors within the system after several changes had to be made to their contract amount. Lastly, payroll taxes were calculated based off of estimates and also did not consider the fact that taxable wages may not equal gross wages for all employees. Cause While estimates might be useful for planning purposes with regards to Federal programs, only the actual amounts incurred should be claimed. Using sufficient documentation, such as payroll registers, will help to ensure that the correct amounts are claimed. Effect Payroll costs of $157 were improperly claimed under the Education Stabilization Fund program. Total estimated likely questioned costs were $188. Recommendation We recommend that the District review its controls and policies to ensure that only actual amounts incurred are claimed under Federal programs. Views of responsible officials See Corrective Action Plan.

Federal program Education Stabilization Fund ? 84.425D Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Costs should be supported by adequate documentation and should be correctly charged as to account, amount, and period. Condition During testing, it was discovered that five of the six non-substitute employees tested did not have a correct amount of wages moved to the ESSER fund. Context Gross wages were rounded up to the nearest whole dollar, which resulted in small variances between the actual amount and the amount claimed. One employee was claimed for $10 too much, which is thought to be the result of a typo during entry. Another employee?s wages were claimed for $100 too much, which was the result of errors within the system after several changes had to be made to their contract amount. Lastly, payroll taxes were calculated based off of estimates and also did not consider the fact that taxable wages may not equal gross wages for all employees. Cause While estimates might be useful for planning purposes with regards to Federal programs, only the actual amounts incurred should be claimed. Using sufficient documentation, such as payroll registers, will help to ensure that the correct amounts are claimed. Effect Payroll costs of $157 were improperly claimed under the Education Stabilization Fund program. Total estimated likely questioned costs were $188. Recommendation We recommend that the District review its controls and policies to ensure that only actual amounts incurred are claimed under Federal programs. Views of responsible officials See Corrective Action Plan.