Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to employee experience is not being properly maintained in the personnel files. Context A sample of 40 employees was selected for audit from a population of 268 employees. The test found that 8 employees did not have the proper documentation to support the years of experience for salary determination. There are $31,610 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition There were inadequate controls over payments for goods and services. Criteria The School Board should adhere to its policies and procedures to ensure that receipt of goods is properly documented prior to invoice payment. Cause The School Board did not adhere to its policies and procedures regarding purchasing documentation. Effect Supporting documentation relating to receipt of goods was not present for some disbursements. Context A sample of 40 disbursements was selected for audit from a population of 331 disbursements. The test found that 1 disbursement did not have documentation supporting the receipt of goods. There are $42,515 of questioned costs as a result of inadequate documentation for receipt of goods. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action To ensure that receipt of goods is properly documented prior to invoice payment, the following process will be implemented effective immediately: (1) As of 7/1/2022, inventory received by each school site will be verified for documentation of receipt (signature) by CNS Office Coordinator/ Accounts Payable, (2) Inventory received without documentation of receipt will be verified with computer entry of inventory received by Area Supervisor assigned to that school; receiving date, quantity received, and price will be verified and signature will be obtained, (3) Documentation of receipt for inventory received that has not been processed for payment will be reviewed by Area Supervisor prior to submission to CNS Office Coordinator for payment, (4) School Site Cafeteria Managers and Technicians have received notification of and training on this requirement, (5) Area Supervisors will review all inventory receipts when conducting routine monitoring, and (6) The CNS Office Coordinator will be the final check to ensure that receipt of goods is properly documented.
Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to employee experience is not being properly maintained in the personnel files. Context A sample of 40 employees was selected for audit from a population of 268 employees. The test found that 8 employees did not have the proper documentation to support the years of experience for salary determination. There are $31,610 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition There were inadequate controls over payments for goods and services. Criteria The School Board should adhere to its policies and procedures to ensure that receipt of goods is properly documented prior to invoice payment. Cause The School Board did not adhere to its policies and procedures regarding purchasing documentation. Effect Supporting documentation relating to receipt of goods was not present for some disbursements. Context A sample of 40 disbursements was selected for audit from a population of 331 disbursements. The test found that 1 disbursement did not have documentation supporting the receipt of goods. There are $42,515 of questioned costs as a result of inadequate documentation for receipt of goods. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action To ensure that receipt of goods is properly documented prior to invoice payment, the following process will be implemented effective immediately: (1) As of 7/1/2022, inventory received by each school site will be verified for documentation of receipt (signature) by CNS Office Coordinator/ Accounts Payable, (2) Inventory received without documentation of receipt will be verified with computer entry of inventory received by Area Supervisor assigned to that school; receiving date, quantity received, and price will be verified and signature will be obtained, (3) Documentation of receipt for inventory received that has not been processed for payment will be reviewed by Area Supervisor prior to submission to CNS Office Coordinator for payment, (4) School Site Cafeteria Managers and Technicians have received notification of and training on this requirement, (5) Area Supervisors will review all inventory receipts when conducting routine monitoring, and (6) The CNS Office Coordinator will be the final check to ensure that receipt of goods is properly documented.
Condition The School Board did not report expenditures in the amount of $1,403,046 for the ESSERF II Formula grant on its Schedule of Expenditures of Federal Awards for the year ending June 30, 2021. Criteria OMB Circular A-133, section 205(a) states that ?determination of when a Federal award is expended should be based on when the activity related to the award occurs.? Additionally, OMB Circular A-133, section 300(d) states that ?the auditee shall prepare appropriate financial statements, including the schedule of expenditures in Federal awards.? Cause The School Board did not have internal control policies and procedures in place to properly track reimbursable expenditures in order to recognize them as federal expenditures in the year in which they were incurred. Effect The School Board did not properly report expenditures on the Schedule of Expenditures of Federal Awards. Context The School Board did not properly identify all federal expenditures in the year incurred. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are accurately tracked and captured for proper presentation within the Schedule of Expenditures of Federal Awards. Views of Responsible Officials and Planned Corrective Action Accountants shall receive training to ensure all related expenditures are reported on the Schedule of Expenditures of Federal Awards (SEFA) in each respective year. Each Accountant will review their respective grant expenditures and ensure that all applicable expenditures are recorded properly for accuracy and completeness. A second reviewer will ascertain the accuracy of the recorded expenditures on the SEFA.
Condition The School Board requested grant reimbursement for amounts paid by the self-insurance fund to cover claims for COVID-19 hospitalizations. Criteria In accordance with grant guidelines, the funds may be used to implement public health protocols, such as COVID-19 testing and vaccination, meant to decrease the spread of COVID-19. Payment for hospitalizations to treat infections does not appear to be allowable within the grant guidelines of implementing public health protocols. Cause The School Board did not have internal control policies and procedures in place to ensure that funds were spent in accordance with grant guidelines. Effect The School Board expended grant funds for an activity that does not appear to be allowable under the grant guidelines. Context A sample of 65 disbursements was selected for audit from a population of 233 disbursements. The test found that 1 disbursement was a payment made to reimburse the self-insurance fund for amounts paid for claims related to COVID-19 hospitalization. There are $756,609 of questioned costs as a result of this reimbursement. Our sample was a non-statistical sample. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are allowable under grant guidelines. Views of Responsible Officials and Planned Corrective Action The Lafayette Parish School System (LPSS) Self-Funded Group Health Insurance fund paid $756,609 in hospitalization claims that were directly caused by Covid-19 according to the hospitals that provided hospitalization services to our employees. Had the Covid-19 pandemic not occurred, LPSS would not have experienced an increase in claim expenses that were directly caused by Covid-19 which is categorically tracked by hospitals. During the covid pandemic, LPSS had several conference calls with Louisiana Department of Education (LDOE) representatives concerning the allowability of Covid Testing, Vaccinations and Covid Hospitalizations. The objective was to remain compliant with all federal guidelines concerning these special funds. After many hours of conference calls and consultations with LDOE staff, we were informed these expenditures were allowed in addition to a written response. In anticipation of these charges, LPSS submitted an ESSER II budget to the LDOE, which included Covid Hospitalization claims, and the budget was approved. Based on LDOE?s budget approval and prior verbal and written responses, LPSS staff believed they were clear to proceed and recover from these unplanned Covid-19 hospitalization expenditures. As a result of this audit finding, LPSS will appeal to the LDOE and the Federal Government for relief and an eventual inclusion of guidelines for self-funded entities such as LPSS. Unlike other school districts, LPSS is self-insured and assumes the financial risks and obligation of each employee?s medical and prescription claims. We believe the writers of the federal guidelines / FAQs may not have been privy to the operational affairs of school districts that are self-insured to carve out language specific to our operations. On December 13, 2022, a request for review was sent to LDOE in response to this audit finding. The LDOE plans to utilize their resources and contacts while enlisting the help of their contracted attorneys who specialize in federal grants to provide an initial opinion on the allowability of Covid Hospitalization expenditures. It may take several months before an official response is provided by the Federal Government.
Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to education necessary to meet minimum job requirements and employee experience is not being properly maintained in the personnel files. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 4 employees did not have the proper documentation to support the years of experience for salary determination or minimum education to meet job requirements. There are $37,691 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition Salary increases approved by the Board were incorrectly calculated and paid. Criteria The Board approved a $750 teacher pay increase effective November 1, 2021, and a $750 instructional employee pay increase effective February 1, 2022. Cause The pay increases became effective during the fiscal year and the calculation to prorate the increase was incorrectly performed. Effect The School Board incorrectly calculated and paid the salary increase to employees. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 43 employees were paid incorrectly. There are $6,403 of questioned costs as a result of incorrect salary calculations. Our sample was a non-statistical sample. Recommendation The School Board should ensure that salary increases given during the fiscal year are correctly calculated and paid. Views of Responsible Officials and Planned Corrective Action The Employee Services Department will have all salaries reviewed after they are set up in the accounting system. Connie Morvant, HR Generalist, will complete this function moving forward. All 2022-2023 hires have been audited and corrected. John Mouton, Director of Employee Services, and Eryn Hollier, Coordinator of Employee Services will review the salary schedule when updates are made. Also, when having to calculate salary increases or raises for a specific group of people during the year, the raise will be calculated according to the individual employees? number of working days remaining on their contract for the year. Employee Services will also consult Business Services as we have done in the past to ensure the raises and salaries are calculated correctly.
Condition The School Board did not report expenditures in the amount of $1,403,046 for the ESSERF II Formula grant on its Schedule of Expenditures of Federal Awards for the year ending June 30, 2021. Criteria OMB Circular A-133, section 205(a) states that ?determination of when a Federal award is expended should be based on when the activity related to the award occurs.? Additionally, OMB Circular A-133, section 300(d) states that ?the auditee shall prepare appropriate financial statements, including the schedule of expenditures in Federal awards.? Cause The School Board did not have internal control policies and procedures in place to properly track reimbursable expenditures in order to recognize them as federal expenditures in the year in which they were incurred. Effect The School Board did not properly report expenditures on the Schedule of Expenditures of Federal Awards. Context The School Board did not properly identify all federal expenditures in the year incurred. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are accurately tracked and captured for proper presentation within the Schedule of Expenditures of Federal Awards. Views of Responsible Officials and Planned Corrective Action Accountants shall receive training to ensure all related expenditures are reported on the Schedule of Expenditures of Federal Awards (SEFA) in each respective year. Each Accountant will review their respective grant expenditures and ensure that all applicable expenditures are recorded properly for accuracy and completeness. A second reviewer will ascertain the accuracy of the recorded expenditures on the SEFA.
Condition The School Board requested grant reimbursement for amounts paid by the self-insurance fund to cover claims for COVID-19 hospitalizations. Criteria In accordance with grant guidelines, the funds may be used to implement public health protocols, such as COVID-19 testing and vaccination, meant to decrease the spread of COVID-19. Payment for hospitalizations to treat infections does not appear to be allowable within the grant guidelines of implementing public health protocols. Cause The School Board did not have internal control policies and procedures in place to ensure that funds were spent in accordance with grant guidelines. Effect The School Board expended grant funds for an activity that does not appear to be allowable under the grant guidelines. Context A sample of 65 disbursements was selected for audit from a population of 233 disbursements. The test found that 1 disbursement was a payment made to reimburse the self-insurance fund for amounts paid for claims related to COVID-19 hospitalization. There are $756,609 of questioned costs as a result of this reimbursement. Our sample was a non-statistical sample. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are allowable under grant guidelines. Views of Responsible Officials and Planned Corrective Action The Lafayette Parish School System (LPSS) Self-Funded Group Health Insurance fund paid $756,609 in hospitalization claims that were directly caused by Covid-19 according to the hospitals that provided hospitalization services to our employees. Had the Covid-19 pandemic not occurred, LPSS would not have experienced an increase in claim expenses that were directly caused by Covid-19 which is categorically tracked by hospitals. During the covid pandemic, LPSS had several conference calls with Louisiana Department of Education (LDOE) representatives concerning the allowability of Covid Testing, Vaccinations and Covid Hospitalizations. The objective was to remain compliant with all federal guidelines concerning these special funds. After many hours of conference calls and consultations with LDOE staff, we were informed these expenditures were allowed in addition to a written response. In anticipation of these charges, LPSS submitted an ESSER II budget to the LDOE, which included Covid Hospitalization claims, and the budget was approved. Based on LDOE?s budget approval and prior verbal and written responses, LPSS staff believed they were clear to proceed and recover from these unplanned Covid-19 hospitalization expenditures. As a result of this audit finding, LPSS will appeal to the LDOE and the Federal Government for relief and an eventual inclusion of guidelines for self-funded entities such as LPSS. Unlike other school districts, LPSS is self-insured and assumes the financial risks and obligation of each employee?s medical and prescription claims. We believe the writers of the federal guidelines / FAQs may not have been privy to the operational affairs of school districts that are self-insured to carve out language specific to our operations. On December 13, 2022, a request for review was sent to LDOE in response to this audit finding. The LDOE plans to utilize their resources and contacts while enlisting the help of their contracted attorneys who specialize in federal grants to provide an initial opinion on the allowability of Covid Hospitalization expenditures. It may take several months before an official response is provided by the Federal Government.
Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to education necessary to meet minimum job requirements and employee experience is not being properly maintained in the personnel files. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 4 employees did not have the proper documentation to support the years of experience for salary determination or minimum education to meet job requirements. There are $37,691 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition Salary increases approved by the Board were incorrectly calculated and paid. Criteria The Board approved a $750 teacher pay increase effective November 1, 2021, and a $750 instructional employee pay increase effective February 1, 2022. Cause The pay increases became effective during the fiscal year and the calculation to prorate the increase was incorrectly performed. Effect The School Board incorrectly calculated and paid the salary increase to employees. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 43 employees were paid incorrectly. There are $6,403 of questioned costs as a result of incorrect salary calculations. Our sample was a non-statistical sample. Recommendation The School Board should ensure that salary increases given during the fiscal year are correctly calculated and paid. Views of Responsible Officials and Planned Corrective Action The Employee Services Department will have all salaries reviewed after they are set up in the accounting system. Connie Morvant, HR Generalist, will complete this function moving forward. All 2022-2023 hires have been audited and corrected. John Mouton, Director of Employee Services, and Eryn Hollier, Coordinator of Employee Services will review the salary schedule when updates are made. Also, when having to calculate salary increases or raises for a specific group of people during the year, the raise will be calculated according to the individual employees? number of working days remaining on their contract for the year. Employee Services will also consult Business Services as we have done in the past to ensure the raises and salaries are calculated correctly.
Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to employee experience is not being properly maintained in the personnel files. Context A sample of 40 employees was selected for audit from a population of 268 employees. The test found that 8 employees did not have the proper documentation to support the years of experience for salary determination. There are $31,610 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition There were inadequate controls over payments for goods and services. Criteria The School Board should adhere to its policies and procedures to ensure that receipt of goods is properly documented prior to invoice payment. Cause The School Board did not adhere to its policies and procedures regarding purchasing documentation. Effect Supporting documentation relating to receipt of goods was not present for some disbursements. Context A sample of 40 disbursements was selected for audit from a population of 331 disbursements. The test found that 1 disbursement did not have documentation supporting the receipt of goods. There are $42,515 of questioned costs as a result of inadequate documentation for receipt of goods. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action To ensure that receipt of goods is properly documented prior to invoice payment, the following process will be implemented effective immediately: (1) As of 7/1/2022, inventory received by each school site will be verified for documentation of receipt (signature) by CNS Office Coordinator/ Accounts Payable, (2) Inventory received without documentation of receipt will be verified with computer entry of inventory received by Area Supervisor assigned to that school; receiving date, quantity received, and price will be verified and signature will be obtained, (3) Documentation of receipt for inventory received that has not been processed for payment will be reviewed by Area Supervisor prior to submission to CNS Office Coordinator for payment, (4) School Site Cafeteria Managers and Technicians have received notification of and training on this requirement, (5) Area Supervisors will review all inventory receipts when conducting routine monitoring, and (6) The CNS Office Coordinator will be the final check to ensure that receipt of goods is properly documented.
Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to employee experience is not being properly maintained in the personnel files. Context A sample of 40 employees was selected for audit from a population of 268 employees. The test found that 8 employees did not have the proper documentation to support the years of experience for salary determination. There are $31,610 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition There were inadequate controls over payments for goods and services. Criteria The School Board should adhere to its policies and procedures to ensure that receipt of goods is properly documented prior to invoice payment. Cause The School Board did not adhere to its policies and procedures regarding purchasing documentation. Effect Supporting documentation relating to receipt of goods was not present for some disbursements. Context A sample of 40 disbursements was selected for audit from a population of 331 disbursements. The test found that 1 disbursement did not have documentation supporting the receipt of goods. There are $42,515 of questioned costs as a result of inadequate documentation for receipt of goods. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action To ensure that receipt of goods is properly documented prior to invoice payment, the following process will be implemented effective immediately: (1) As of 7/1/2022, inventory received by each school site will be verified for documentation of receipt (signature) by CNS Office Coordinator/ Accounts Payable, (2) Inventory received without documentation of receipt will be verified with computer entry of inventory received by Area Supervisor assigned to that school; receiving date, quantity received, and price will be verified and signature will be obtained, (3) Documentation of receipt for inventory received that has not been processed for payment will be reviewed by Area Supervisor prior to submission to CNS Office Coordinator for payment, (4) School Site Cafeteria Managers and Technicians have received notification of and training on this requirement, (5) Area Supervisors will review all inventory receipts when conducting routine monitoring, and (6) The CNS Office Coordinator will be the final check to ensure that receipt of goods is properly documented.
Condition The School Board did not report expenditures in the amount of $1,403,046 for the ESSERF II Formula grant on its Schedule of Expenditures of Federal Awards for the year ending June 30, 2021. Criteria OMB Circular A-133, section 205(a) states that ?determination of when a Federal award is expended should be based on when the activity related to the award occurs.? Additionally, OMB Circular A-133, section 300(d) states that ?the auditee shall prepare appropriate financial statements, including the schedule of expenditures in Federal awards.? Cause The School Board did not have internal control policies and procedures in place to properly track reimbursable expenditures in order to recognize them as federal expenditures in the year in which they were incurred. Effect The School Board did not properly report expenditures on the Schedule of Expenditures of Federal Awards. Context The School Board did not properly identify all federal expenditures in the year incurred. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are accurately tracked and captured for proper presentation within the Schedule of Expenditures of Federal Awards. Views of Responsible Officials and Planned Corrective Action Accountants shall receive training to ensure all related expenditures are reported on the Schedule of Expenditures of Federal Awards (SEFA) in each respective year. Each Accountant will review their respective grant expenditures and ensure that all applicable expenditures are recorded properly for accuracy and completeness. A second reviewer will ascertain the accuracy of the recorded expenditures on the SEFA.
Condition The School Board requested grant reimbursement for amounts paid by the self-insurance fund to cover claims for COVID-19 hospitalizations. Criteria In accordance with grant guidelines, the funds may be used to implement public health protocols, such as COVID-19 testing and vaccination, meant to decrease the spread of COVID-19. Payment for hospitalizations to treat infections does not appear to be allowable within the grant guidelines of implementing public health protocols. Cause The School Board did not have internal control policies and procedures in place to ensure that funds were spent in accordance with grant guidelines. Effect The School Board expended grant funds for an activity that does not appear to be allowable under the grant guidelines. Context A sample of 65 disbursements was selected for audit from a population of 233 disbursements. The test found that 1 disbursement was a payment made to reimburse the self-insurance fund for amounts paid for claims related to COVID-19 hospitalization. There are $756,609 of questioned costs as a result of this reimbursement. Our sample was a non-statistical sample. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are allowable under grant guidelines. Views of Responsible Officials and Planned Corrective Action The Lafayette Parish School System (LPSS) Self-Funded Group Health Insurance fund paid $756,609 in hospitalization claims that were directly caused by Covid-19 according to the hospitals that provided hospitalization services to our employees. Had the Covid-19 pandemic not occurred, LPSS would not have experienced an increase in claim expenses that were directly caused by Covid-19 which is categorically tracked by hospitals. During the covid pandemic, LPSS had several conference calls with Louisiana Department of Education (LDOE) representatives concerning the allowability of Covid Testing, Vaccinations and Covid Hospitalizations. The objective was to remain compliant with all federal guidelines concerning these special funds. After many hours of conference calls and consultations with LDOE staff, we were informed these expenditures were allowed in addition to a written response. In anticipation of these charges, LPSS submitted an ESSER II budget to the LDOE, which included Covid Hospitalization claims, and the budget was approved. Based on LDOE?s budget approval and prior verbal and written responses, LPSS staff believed they were clear to proceed and recover from these unplanned Covid-19 hospitalization expenditures. As a result of this audit finding, LPSS will appeal to the LDOE and the Federal Government for relief and an eventual inclusion of guidelines for self-funded entities such as LPSS. Unlike other school districts, LPSS is self-insured and assumes the financial risks and obligation of each employee?s medical and prescription claims. We believe the writers of the federal guidelines / FAQs may not have been privy to the operational affairs of school districts that are self-insured to carve out language specific to our operations. On December 13, 2022, a request for review was sent to LDOE in response to this audit finding. The LDOE plans to utilize their resources and contacts while enlisting the help of their contracted attorneys who specialize in federal grants to provide an initial opinion on the allowability of Covid Hospitalization expenditures. It may take several months before an official response is provided by the Federal Government.
Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to education necessary to meet minimum job requirements and employee experience is not being properly maintained in the personnel files. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 4 employees did not have the proper documentation to support the years of experience for salary determination or minimum education to meet job requirements. There are $37,691 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition Salary increases approved by the Board were incorrectly calculated and paid. Criteria The Board approved a $750 teacher pay increase effective November 1, 2021, and a $750 instructional employee pay increase effective February 1, 2022. Cause The pay increases became effective during the fiscal year and the calculation to prorate the increase was incorrectly performed. Effect The School Board incorrectly calculated and paid the salary increase to employees. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 43 employees were paid incorrectly. There are $6,403 of questioned costs as a result of incorrect salary calculations. Our sample was a non-statistical sample. Recommendation The School Board should ensure that salary increases given during the fiscal year are correctly calculated and paid. Views of Responsible Officials and Planned Corrective Action The Employee Services Department will have all salaries reviewed after they are set up in the accounting system. Connie Morvant, HR Generalist, will complete this function moving forward. All 2022-2023 hires have been audited and corrected. John Mouton, Director of Employee Services, and Eryn Hollier, Coordinator of Employee Services will review the salary schedule when updates are made. Also, when having to calculate salary increases or raises for a specific group of people during the year, the raise will be calculated according to the individual employees? number of working days remaining on their contract for the year. Employee Services will also consult Business Services as we have done in the past to ensure the raises and salaries are calculated correctly.
Condition The School Board did not report expenditures in the amount of $1,403,046 for the ESSERF II Formula grant on its Schedule of Expenditures of Federal Awards for the year ending June 30, 2021. Criteria OMB Circular A-133, section 205(a) states that ?determination of when a Federal award is expended should be based on when the activity related to the award occurs.? Additionally, OMB Circular A-133, section 300(d) states that ?the auditee shall prepare appropriate financial statements, including the schedule of expenditures in Federal awards.? Cause The School Board did not have internal control policies and procedures in place to properly track reimbursable expenditures in order to recognize them as federal expenditures in the year in which they were incurred. Effect The School Board did not properly report expenditures on the Schedule of Expenditures of Federal Awards. Context The School Board did not properly identify all federal expenditures in the year incurred. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are accurately tracked and captured for proper presentation within the Schedule of Expenditures of Federal Awards. Views of Responsible Officials and Planned Corrective Action Accountants shall receive training to ensure all related expenditures are reported on the Schedule of Expenditures of Federal Awards (SEFA) in each respective year. Each Accountant will review their respective grant expenditures and ensure that all applicable expenditures are recorded properly for accuracy and completeness. A second reviewer will ascertain the accuracy of the recorded expenditures on the SEFA.
Condition The School Board requested grant reimbursement for amounts paid by the self-insurance fund to cover claims for COVID-19 hospitalizations. Criteria In accordance with grant guidelines, the funds may be used to implement public health protocols, such as COVID-19 testing and vaccination, meant to decrease the spread of COVID-19. Payment for hospitalizations to treat infections does not appear to be allowable within the grant guidelines of implementing public health protocols. Cause The School Board did not have internal control policies and procedures in place to ensure that funds were spent in accordance with grant guidelines. Effect The School Board expended grant funds for an activity that does not appear to be allowable under the grant guidelines. Context A sample of 65 disbursements was selected for audit from a population of 233 disbursements. The test found that 1 disbursement was a payment made to reimburse the self-insurance fund for amounts paid for claims related to COVID-19 hospitalization. There are $756,609 of questioned costs as a result of this reimbursement. Our sample was a non-statistical sample. Recommendation The School Board should implement policies and procedures to ensure that all expenditures under grant programs are allowable under grant guidelines. Views of Responsible Officials and Planned Corrective Action The Lafayette Parish School System (LPSS) Self-Funded Group Health Insurance fund paid $756,609 in hospitalization claims that were directly caused by Covid-19 according to the hospitals that provided hospitalization services to our employees. Had the Covid-19 pandemic not occurred, LPSS would not have experienced an increase in claim expenses that were directly caused by Covid-19 which is categorically tracked by hospitals. During the covid pandemic, LPSS had several conference calls with Louisiana Department of Education (LDOE) representatives concerning the allowability of Covid Testing, Vaccinations and Covid Hospitalizations. The objective was to remain compliant with all federal guidelines concerning these special funds. After many hours of conference calls and consultations with LDOE staff, we were informed these expenditures were allowed in addition to a written response. In anticipation of these charges, LPSS submitted an ESSER II budget to the LDOE, which included Covid Hospitalization claims, and the budget was approved. Based on LDOE?s budget approval and prior verbal and written responses, LPSS staff believed they were clear to proceed and recover from these unplanned Covid-19 hospitalization expenditures. As a result of this audit finding, LPSS will appeal to the LDOE and the Federal Government for relief and an eventual inclusion of guidelines for self-funded entities such as LPSS. Unlike other school districts, LPSS is self-insured and assumes the financial risks and obligation of each employee?s medical and prescription claims. We believe the writers of the federal guidelines / FAQs may not have been privy to the operational affairs of school districts that are self-insured to carve out language specific to our operations. On December 13, 2022, a request for review was sent to LDOE in response to this audit finding. The LDOE plans to utilize their resources and contacts while enlisting the help of their contracted attorneys who specialize in federal grants to provide an initial opinion on the allowability of Covid Hospitalization expenditures. It may take several months before an official response is provided by the Federal Government.
Condition There were inadequate controls over documentation in personnel files. Criteria The School Board should adhere to its policies and procedures to ensure that all required documentation is maintained in the personnel files. Cause The School Board did not adhere to its policies and procedures regarding personnel file documentation. Effect Supporting documentation relating to education necessary to meet minimum job requirements and employee experience is not being properly maintained in the personnel files. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 4 employees did not have the proper documentation to support the years of experience for salary determination or minimum education to meet job requirements. There are $37,691 of questioned costs as a result of inadequate personnel documentation. Our sample was a non-statistical sample. Recommendation The School Board should adhere to their policies and procedures and ensure that all required documentation is maintained. Views of Responsible Officials and Planned Corrective Action Moving forward, Pam Belmore has been assigned the task of auditing personnel files to ensure the correct experience and education information is in the files. She is starting with the grant-funded positions first, per Anthony Mouton?s suggestion. Also, Madeline Guilbeau, Employee Services data Technician, has been given the role of checking certification requirements for non-teaching/non-instructional personnel. Some employees are given a grace period of 60 to 90 days to pass different certification/licensure exams. Ms. Guilbeau will be responsible for ensuring that these employees meet said requirements. She will begin with ensuring that all grant-funded employees are up to date and then move on to other employees.
Condition Salary increases approved by the Board were incorrectly calculated and paid. Criteria The Board approved a $750 teacher pay increase effective November 1, 2021, and a $750 instructional employee pay increase effective February 1, 2022. Cause The pay increases became effective during the fiscal year and the calculation to prorate the increase was incorrectly performed. Effect The School Board incorrectly calculated and paid the salary increase to employees. Context A sample of 55 employees was selected for audit from a population of 55 employees. The test found that 43 employees were paid incorrectly. There are $6,403 of questioned costs as a result of incorrect salary calculations. Our sample was a non-statistical sample. Recommendation The School Board should ensure that salary increases given during the fiscal year are correctly calculated and paid. Views of Responsible Officials and Planned Corrective Action The Employee Services Department will have all salaries reviewed after they are set up in the accounting system. Connie Morvant, HR Generalist, will complete this function moving forward. All 2022-2023 hires have been audited and corrected. John Mouton, Director of Employee Services, and Eryn Hollier, Coordinator of Employee Services will review the salary schedule when updates are made. Also, when having to calculate salary increases or raises for a specific group of people during the year, the raise will be calculated according to the individual employees? number of working days remaining on their contract for the year. Employee Services will also consult Business Services as we have done in the past to ensure the raises and salaries are calculated correctly.