2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-006 FindingPayroll testing and internal controlsPrograms:COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UTwenty First Century Community Learning Centers ALN #84.287Compliance Requirement: Allowable Costs/Cost PrinciplesCriteria:The school district is charged with developing controls around payroll expenditures that will provideauthorization 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 withthe record-keeping requirements of the federal wage and hour law.Condition:We noted the following items while testing payroll expenditures:1. The district did not detail in minutes the budget amount or annualized pay, including rate,number of days, and hours per day, for hourly employees.2. The district did not provide board approved salary scales or annualized amounts to verify thebudgeted amount in the software for hourly employees. 3. District did not include the details (annualized calculation) or budgeted amounts for the federalsupplement being paid in the board minutes along with the approvals. The business managerkept a spreadsheet showing the allocated amounts or hourly rates, but it was not included inthe minutes for all employees receiving the supplements. Timesheets were also not beingreconciled to show how time was being allocated between district and federal pay.Context:Internal control procedures were tested for payroll in the major federal funds and other nonmajor federalfunds if included in the sample.Cause:The district did not have the proper controls in place to ensure all federal supplements paid to employeeswere properly detailed in the board minutes including rate of pay and total time allowed.Effect:Not being able to verify an employee?s supplemental pay could result in underpaying or overpaying anemployee according to the federal application or budgeted amount approved by the board.Questioned Costs:NoneRecommendation:We recommend the district implement internal controls to ensure all employees are properly boardapproved, including all supplemental payments for noncertified and certified employees.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-006 FindingPayroll testing and internal controlsPrograms:COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UTwenty First Century Community Learning Centers ALN #84.287Compliance Requirement: Allowable Costs/Cost PrinciplesCriteria:The school district is charged with developing controls around payroll expenditures that will provideauthorization 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 withthe record-keeping requirements of the federal wage and hour law.Condition:We noted the following items while testing payroll expenditures:1. The district did not detail in minutes the budget amount or annualized pay, including rate,number of days, and hours per day, for hourly employees.2. The district did not provide board approved salary scales or annualized amounts to verify thebudgeted amount in the software for hourly employees. 3. District did not include the details (annualized calculation) or budgeted amounts for the federalsupplement being paid in the board minutes along with the approvals. The business managerkept a spreadsheet showing the allocated amounts or hourly rates, but it was not included inthe minutes for all employees receiving the supplements. Timesheets were also not beingreconciled to show how time was being allocated between district and federal pay.Context:Internal control procedures were tested for payroll in the major federal funds and other nonmajor federalfunds if included in the sample.Cause:The district did not have the proper controls in place to ensure all federal supplements paid to employeeswere properly detailed in the board minutes including rate of pay and total time allowed.Effect:Not being able to verify an employee?s supplemental pay could result in underpaying or overpaying anemployee according to the federal application or budgeted amount approved by the board.Questioned Costs:NoneRecommendation:We recommend the district implement internal controls to ensure all employees are properly boardapproved, including all supplemental payments for noncertified and certified employees.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-006 FindingPayroll testing and internal controlsPrograms:COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UTwenty First Century Community Learning Centers ALN #84.287Compliance Requirement: Allowable Costs/Cost PrinciplesCriteria:The school district is charged with developing controls around payroll expenditures that will provideauthorization 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 withthe record-keeping requirements of the federal wage and hour law.Condition:We noted the following items while testing payroll expenditures:1. The district did not detail in minutes the budget amount or annualized pay, including rate,number of days, and hours per day, for hourly employees.2. The district did not provide board approved salary scales or annualized amounts to verify thebudgeted amount in the software for hourly employees. 3. District did not include the details (annualized calculation) or budgeted amounts for the federalsupplement being paid in the board minutes along with the approvals. The business managerkept a spreadsheet showing the allocated amounts or hourly rates, but it was not included inthe minutes for all employees receiving the supplements. Timesheets were also not beingreconciled to show how time was being allocated between district and federal pay.Context:Internal control procedures were tested for payroll in the major federal funds and other nonmajor federalfunds if included in the sample.Cause:The district did not have the proper controls in place to ensure all federal supplements paid to employeeswere properly detailed in the board minutes including rate of pay and total time allowed.Effect:Not being able to verify an employee?s supplemental pay could result in underpaying or overpaying anemployee according to the federal application or budgeted amount approved by the board.Questioned Costs:NoneRecommendation:We recommend the district implement internal controls to ensure all employees are properly boardapproved, including all supplemental payments for noncertified and certified employees.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-005 FindingAccounts payable testing and internal controls.Programs:Child Nutrition Cluster, ALN #10:555; 10:559COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UCompliance Requirement: Allowable Costs/Cost PrinciplesRepeat Finding:NoneCriteria:An effective system of internal control is the responsibility of management. Management should establishan internal control system that ensures strong financial accountability and safeguarding of assets. Thisincludes maintenance of accurate accounting records and following the proper purchasing procedures.Condition:During our testing of forty (40) invoices, we noted the following exceptions:1. Sixteen (16) invoices where the purchase order was dated after the invoice date.2. One (1) invoice tested showing payment more than 45 days after the invoice date.3. Five (5) instances of no indication, signature and/or dated by the employee, of receipt of goodsor services.4. Two (2) in sample where the district reimbursed the wrong mileage rate according to the IRSallowable rate for 2021.5. One (1) in the sample where the higher quote was chosen without an explanation documented. 6. Four (4) in the sample where the invoice was not signed and/or dated when received.Context:Internal control procedures were tested for accounts payable in the major federal funds.Cause:The district did not properly ensure that the accounts payable internal control system was being followedfor all transactions including all purchasing procedures required by the state.Effect:Without a proper internal control system being in place to ensure accurate accounting records, there isan increased risk that the financial statements could be misstated.Questioned Cost:NoneRecommendation:District should implement policies and procedures to establish an internal control system that will requireaccountability with regard to accounts payable and purchasing. This will ensure the proper safeguardingof assets and accurate accounting records.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-006 FindingPayroll testing and internal controlsPrograms:COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UTwenty First Century Community Learning Centers ALN #84.287Compliance Requirement: Allowable Costs/Cost PrinciplesCriteria:The school district is charged with developing controls around payroll expenditures that will provideauthorization 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 withthe record-keeping requirements of the federal wage and hour law.Condition:We noted the following items while testing payroll expenditures:1. The district did not detail in minutes the budget amount or annualized pay, including rate,number of days, and hours per day, for hourly employees.2. The district did not provide board approved salary scales or annualized amounts to verify thebudgeted amount in the software for hourly employees. 3. District did not include the details (annualized calculation) or budgeted amounts for the federalsupplement being paid in the board minutes along with the approvals. The business managerkept a spreadsheet showing the allocated amounts or hourly rates, but it was not included inthe minutes for all employees receiving the supplements. Timesheets were also not beingreconciled to show how time was being allocated between district and federal pay.Context:Internal control procedures were tested for payroll in the major federal funds and other nonmajor federalfunds if included in the sample.Cause:The district did not have the proper controls in place to ensure all federal supplements paid to employeeswere properly detailed in the board minutes including rate of pay and total time allowed.Effect:Not being able to verify an employee?s supplemental pay could result in underpaying or overpaying anemployee according to the federal application or budgeted amount approved by the board.Questioned Costs:NoneRecommendation:We recommend the district implement internal controls to ensure all employees are properly boardapproved, including all supplemental payments for noncertified and certified employees.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-006 FindingPayroll testing and internal controlsPrograms:COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UTwenty First Century Community Learning Centers ALN #84.287Compliance Requirement: Allowable Costs/Cost PrinciplesCriteria:The school district is charged with developing controls around payroll expenditures that will provideauthorization 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 withthe record-keeping requirements of the federal wage and hour law.Condition:We noted the following items while testing payroll expenditures:1. The district did not detail in minutes the budget amount or annualized pay, including rate,number of days, and hours per day, for hourly employees.2. The district did not provide board approved salary scales or annualized amounts to verify thebudgeted amount in the software for hourly employees. 3. District did not include the details (annualized calculation) or budgeted amounts for the federalsupplement being paid in the board minutes along with the approvals. The business managerkept a spreadsheet showing the allocated amounts or hourly rates, but it was not included inthe minutes for all employees receiving the supplements. Timesheets were also not beingreconciled to show how time was being allocated between district and federal pay.Context:Internal control procedures were tested for payroll in the major federal funds and other nonmajor federalfunds if included in the sample.Cause:The district did not have the proper controls in place to ensure all federal supplements paid to employeeswere properly detailed in the board minutes including rate of pay and total time allowed.Effect:Not being able to verify an employee?s supplemental pay could result in underpaying or overpaying anemployee according to the federal application or budgeted amount approved by the board.Questioned Costs:NoneRecommendation:We recommend the district implement internal controls to ensure all employees are properly boardapproved, including all supplemental payments for noncertified and certified employees.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.
2022-006 FindingPayroll testing and internal controlsPrograms:COVID-19 ? Elementary & Secondary School Emergency Relief I & II(ESSER) ALN #84.425DCOVID-19 ? Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425UTwenty First Century Community Learning Centers ALN #84.287Compliance Requirement: Allowable Costs/Cost PrinciplesCriteria:The school district is charged with developing controls around payroll expenditures that will provideauthorization 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 withthe record-keeping requirements of the federal wage and hour law.Condition:We noted the following items while testing payroll expenditures:1. The district did not detail in minutes the budget amount or annualized pay, including rate,number of days, and hours per day, for hourly employees.2. The district did not provide board approved salary scales or annualized amounts to verify thebudgeted amount in the software for hourly employees. 3. District did not include the details (annualized calculation) or budgeted amounts for the federalsupplement being paid in the board minutes along with the approvals. The business managerkept a spreadsheet showing the allocated amounts or hourly rates, but it was not included inthe minutes for all employees receiving the supplements. Timesheets were also not beingreconciled to show how time was being allocated between district and federal pay.Context:Internal control procedures were tested for payroll in the major federal funds and other nonmajor federalfunds if included in the sample.Cause:The district did not have the proper controls in place to ensure all federal supplements paid to employeeswere properly detailed in the board minutes including rate of pay and total time allowed.Effect:Not being able to verify an employee?s supplemental pay could result in underpaying or overpaying anemployee according to the federal application or budgeted amount approved by the board.Questioned Costs:NoneRecommendation:We recommend the district implement internal controls to ensure all employees are properly boardapproved, including all supplemental payments for noncertified and certified employees.Response:Please refer to the Auditee?s Corrective Action Plan beginning on page 80.