Audit 35766

Section III - Federal Award Findings and Questioned Costs 2022-101: Significant Deficiency in Internal Controls Over Compliance: Payroll FAL No. and Name: FAL 84.425C COVID-19: Governor's Emergency Education Relief (GEER) Funds Award Number: None Federal Agency: US Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR, ?200.430(i)(1)(i), the Organization should maintain records that are supported by a system of internal control which provides reasonable assurance that the charges are accurate. Condition and context: We noted the following errors out of a sample of forty payroll transactions that we tested for the payroll period ended August 20, 2021: 1) one employee was not credited for an approved pay increase, 2) one employee was not paid for 4 hours included on the timesheet as hours worked, and 3) one employee was paid for 40 hours that was not documented on a timesheet or otherwise supported by an approved time off request. Cause: Documentation was not sufficient to support all amounts paid to employees and internal controls were not effective in preventing payroll errors. Effect: There is an increased risk that employee compensation will not be paid accurately and amounts charged to federal programs will not be properly supported. Recommendation: To help ensure that charges to payroll expenses are properly supported and accurate, the Organization should implement internal control policies and procedures that requires periodic reviews of employee records as it relates to payrates, amounts recorded on timesheets, and time off approvals. Management's Corrective Action Plan is included at the end of this report.

Section III - Federal Award Findings and Questioned Costs 2022-101: Significant Deficiency in Internal Controls Over Compliance: Payroll FAL No. and Name: FAL 84.425C COVID-19: Governor's Emergency Education Relief (GEER) Funds Award Number: None Federal Agency: US Department of Education Compliance Requirement: Allowable Costs Questioned Costs: None Criteria: In accordance with 2 CFR, ?200.430(i)(1)(i), the Organization should maintain records that are supported by a system of internal control which provides reasonable assurance that the charges are accurate. Condition and context: We noted the following errors out of a sample of forty payroll transactions that we tested for the payroll period ended August 20, 2021: 1) one employee was not credited for an approved pay increase, 2) one employee was not paid for 4 hours included on the timesheet as hours worked, and 3) one employee was paid for 40 hours that was not documented on a timesheet or otherwise supported by an approved time off request. Cause: Documentation was not sufficient to support all amounts paid to employees and internal controls were not effective in preventing payroll errors. Effect: There is an increased risk that employee compensation will not be paid accurately and amounts charged to federal programs will not be properly supported. Recommendation: To help ensure that charges to payroll expenses are properly supported and accurate, the Organization should implement internal control policies and procedures that requires periodic reviews of employee records as it relates to payrates, amounts recorded on timesheets, and time off approvals. Management's Corrective Action Plan is included at the end of this report.