Audit 28637

Finding #2022-004 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Education Passed through Texas Education Agency COVID-19 Education Stabilization Fund ? Elementary and Secondary School Emergency Relief (ARP) Assistance Listing # 84.425U Contract Numbers: S425U210042, S425U210042 Contract Years: 06/30/21 ? 09/30/23, 11/08/21 ? 08/31/24 Criteria: Allowable costs ? An effective system of internal control requires retention of documentation to evidence proper approval of transactions and to provide accurate reporting of transactions. Management is responsible for having an internal control system in place to ensure authorized transactions are reported in the financial statements and that only allowable costs in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ?200.400 are recorded and allocated to federal awards. Condition and context: During our testing of 24 hourly employee payroll transactions charged in whole or in part to the federal program, we noted that 3 of the approved timesheets could not be located. Cause: Inadequate policies and procedures over the retention of documentary evidence of transactions and review and approval. Effect: Failure to adequately establish and maintain effective internal controls over the approval, documentation and recording of payroll disbursements may result in misstatements to the financial statements and/or unauthorized disbursements not being identified in a timely manner. Questioned costs: Unknown Recommendation: Develop policies and procedures to ensure retention of documentary evidence of approved timesheets to ensure accuracy of reporting and allowability. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-004 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Education Passed through Texas Education Agency COVID-19 Education Stabilization Fund ? Elementary and Secondary School Emergency Relief (ARP) Assistance Listing # 84.425U Contract Numbers: S425U210042, S425U210042 Contract Years: 06/30/21 ? 09/30/23, 11/08/21 ? 08/31/24 Criteria: Allowable costs ? An effective system of internal control requires retention of documentation to evidence proper approval of transactions and to provide accurate reporting of transactions. Management is responsible for having an internal control system in place to ensure authorized transactions are reported in the financial statements and that only allowable costs in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ?200.400 are recorded and allocated to federal awards. Condition and context: During our testing of 24 hourly employee payroll transactions charged in whole or in part to the federal program, we noted that 3 of the approved timesheets could not be located. Cause: Inadequate policies and procedures over the retention of documentary evidence of transactions and review and approval. Effect: Failure to adequately establish and maintain effective internal controls over the approval, documentation and recording of payroll disbursements may result in misstatements to the financial statements and/or unauthorized disbursements not being identified in a timely manner. Questioned costs: Unknown Recommendation: Develop policies and procedures to ensure retention of documentary evidence of approved timesheets to ensure accuracy of reporting and allowability. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.