Audit 349023

Activities Allowed or Unallowed; Allowable Costs/Cost Principles – Significant Deficiency Federal Program 84.371 Comprehensive Literacy State Development Program Criteria The District should maintain documentation related to approved pay rates and Federal employment forms. In addition, the District should review controls to ensure rates paid agree to approved pay rates. Condition The District had payroll expenditures that had the following deficiencies: 1) Three employees working did not have the required USCIS Form I-9. 2) Two employees in which documentation of their approved pay rate was not available to be tested. 3) One employee who received salary payments less than the approved contracted amount. Questioned Costs None. Context A sample of forty (40) payroll expenditures were tested. This sample included payroll of each of the six employees associated with the program. Twenty (20) of the expenditures tested related to three (3) of the employees, which did not have supporting USCIS Form I-9 documentation. Twelve (12) of the expenditures tested related to two employees, which did not have approved pay rate documentation available for testing. Seven (7) of the expenditures tested related to one employee was not paid according to their employment agreement. Effect The District is not in compliance with their internal control system and compliance with requirements. Cause Employee documentation was not properly maintained in accordance with the District’s record retention policy. Employee salary rates were not properly checked against approved contracted rates. Recommendation The District should ensure all employees have completed USCIS Form I-9 and that this documentation is securely stored and regularly reviewed. The District should cross-check payroll against approved pay rates to verify accuracy. Repeat Finding This is not a repeat finding View of Responsible Officials See corrective action plan.

Activities Allowed or Unallowed; Allowable Costs/Cost Principles – Significant Deficiency Federal Program 84.371 Comprehensive Literacy State Development Program Criteria The District should maintain documentation related to approved pay rates and Federal employment forms. In addition, the District should review controls to ensure rates paid agree to approved pay rates. Condition The District had payroll expenditures that had the following deficiencies: 1) Three employees working did not have the required USCIS Form I-9. 2) Two employees in which documentation of their approved pay rate was not available to be tested. 3) One employee who received salary payments less than the approved contracted amount. Questioned Costs None. Context A sample of forty (40) payroll expenditures were tested. This sample included payroll of each of the six employees associated with the program. Twenty (20) of the expenditures tested related to three (3) of the employees, which did not have supporting USCIS Form I-9 documentation. Twelve (12) of the expenditures tested related to two employees, which did not have approved pay rate documentation available for testing. Seven (7) of the expenditures tested related to one employee was not paid according to their employment agreement. Effect The District is not in compliance with their internal control system and compliance with requirements. Cause Employee documentation was not properly maintained in accordance with the District’s record retention policy. Employee salary rates were not properly checked against approved contracted rates. Recommendation The District should ensure all employees have completed USCIS Form I-9 and that this documentation is securely stored and regularly reviewed. The District should cross-check payroll against approved pay rates to verify accuracy. Repeat Finding This is not a repeat finding View of Responsible Officials See corrective action plan.