Audit 336795

Finding 2024-001 (Material Weakness) Program(s): Special Education Cluster (IDEA) Federal Agency: United States Department of Education AL #: Cluster 84.027/84.173 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entities: Missouri Department of Elementary and Secondary Education Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable. Condition/Context The District must demonstrate that costs incurred are allowable. The Auditor noted overpayment of various payroll after the time of employee resignation in the above-mentioned federal programs. Cause The District did not follow internal control processes / procedures as outlined per the Employee Handbook related to the employee resignation process for payroll financed by federal assistance. Effect Employees no longer employed for the District were paid with federal assistance that were unallowable. Questioned Costs $26,857 Is the finding a repeat finding No Recommendation We recommend the District implement additional review procedures for the employee resignation process and continue to train management on the required documentation and timelines as required per their Employee Handbook. We also recommend the District consider an electronic, streamlined process for employee resignations that simultaneously alerts critical personnel and reduces the risk for errors. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Finding 2024-001 (Material Weakness) Program(s): Special Education Cluster (IDEA) Federal Agency: United States Department of Education AL #: Cluster 84.027/84.173 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entities: Missouri Department of Elementary and Secondary Education Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable. Condition/Context The District must demonstrate that costs incurred are allowable. The Auditor noted overpayment of various payroll after the time of employee resignation in the above-mentioned federal programs. Cause The District did not follow internal control processes / procedures as outlined per the Employee Handbook related to the employee resignation process for payroll financed by federal assistance. Effect Employees no longer employed for the District were paid with federal assistance that were unallowable. Questioned Costs $26,857 Is the finding a repeat finding No Recommendation We recommend the District implement additional review procedures for the employee resignation process and continue to train management on the required documentation and timelines as required per their Employee Handbook. We also recommend the District consider an electronic, streamlined process for employee resignations that simultaneously alerts critical personnel and reduces the risk for errors. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Finding 2024-001 (Material Weakness) Program(s): Special Education Cluster (IDEA) Federal Agency: United States Department of Education AL #: Cluster 84.027/84.173 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entities: Missouri Department of Elementary and Secondary Education Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable. Condition/Context The District must demonstrate that costs incurred are allowable. The Auditor noted overpayment of various payroll after the time of employee resignation in the above-mentioned federal programs. Cause The District did not follow internal control processes / procedures as outlined per the Employee Handbook related to the employee resignation process for payroll financed by federal assistance. Effect Employees no longer employed for the District were paid with federal assistance that were unallowable. Questioned Costs $26,857 Is the finding a repeat finding No Recommendation We recommend the District implement additional review procedures for the employee resignation process and continue to train management on the required documentation and timelines as required per their Employee Handbook. We also recommend the District consider an electronic, streamlined process for employee resignations that simultaneously alerts critical personnel and reduces the risk for errors. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Finding 2024-001 (Material Weakness) Program(s): Special Education Cluster (IDEA) Federal Agency: United States Department of Education AL #: Cluster 84.027/84.173 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entities: Missouri Department of Elementary and Secondary Education Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable. Condition/Context The District must demonstrate that costs incurred are allowable. The Auditor noted overpayment of various payroll after the time of employee resignation in the above-mentioned federal programs. Cause The District did not follow internal control processes / procedures as outlined per the Employee Handbook related to the employee resignation process for payroll financed by federal assistance. Effect Employees no longer employed for the District were paid with federal assistance that were unallowable. Questioned Costs $26,857 Is the finding a repeat finding No Recommendation We recommend the District implement additional review procedures for the employee resignation process and continue to train management on the required documentation and timelines as required per their Employee Handbook. We also recommend the District consider an electronic, streamlined process for employee resignations that simultaneously alerts critical personnel and reduces the risk for errors. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Finding 2024-001 (Material Weakness) Program(s): Special Education Cluster (IDEA) Federal Agency: United States Department of Education AL #: Cluster 84.027/84.173 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entities: Missouri Department of Elementary and Secondary Education Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable. Condition/Context The District must demonstrate that costs incurred are allowable. The Auditor noted overpayment of various payroll after the time of employee resignation in the above-mentioned federal programs. Cause The District did not follow internal control processes / procedures as outlined per the Employee Handbook related to the employee resignation process for payroll financed by federal assistance. Effect Employees no longer employed for the District were paid with federal assistance that were unallowable. Questioned Costs $26,857 Is the finding a repeat finding No Recommendation We recommend the District implement additional review procedures for the employee resignation process and continue to train management on the required documentation and timelines as required per their Employee Handbook. We also recommend the District consider an electronic, streamlined process for employee resignations that simultaneously alerts critical personnel and reduces the risk for errors. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.

Finding 2024-001 (Material Weakness) Program(s): Special Education Cluster (IDEA) Federal Agency: United States Department of Education AL #: Cluster 84.027/84.173 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entities: Missouri Department of Elementary and Secondary Education Type of Compliance Finding: A) Activities Allowed or Unallowed and B) Allowable Costs/Cost Principles Criteria Per relevant statutory and regulatory provisions, costs must be allowable as specified in the references indicated for each program. Criteria must be met to determine if costs, such as separation leave costs (2 CFR section 200.431(b)), severance costs (2 CFR section 200.431(i), and post-retirement health benefits (PRHB) costs (2 CFR section 200.431(h)) are allowable. Condition/Context The District must demonstrate that costs incurred are allowable. The Auditor noted overpayment of various payroll after the time of employee resignation in the above-mentioned federal programs. Cause The District did not follow internal control processes / procedures as outlined per the Employee Handbook related to the employee resignation process for payroll financed by federal assistance. Effect Employees no longer employed for the District were paid with federal assistance that were unallowable. Questioned Costs $26,857 Is the finding a repeat finding No Recommendation We recommend the District implement additional review procedures for the employee resignation process and continue to train management on the required documentation and timelines as required per their Employee Handbook. We also recommend the District consider an electronic, streamlined process for employee resignations that simultaneously alerts critical personnel and reduces the risk for errors. Views of Responsible Officials/ Planned Corrective Actions Management agrees with the finding. See Corrective Action Plan on Organization’s letterhead.