Audit 374848

Program: Child Nutrition Cluster, U.S. Department of Agriculture, 10.553 & 10.555, Federal Award #: 241970, 251970, 241960, 251960 Criteria: The School District should maintain internal controls to document salaries and wages that accurately reflect the expenditures incurred and work performed based on Uniform Guidance. The internal controls should provide reasonable assurance that the charges are accurate, allowable, and properly allocated as to account and period. Questioned Costs: $2,684 Condition: The School District’s support for the payroll indicated that an incorrect amount was paid for transactions charged to the Food Service Fund. The School District paid 3 of the sample of 40 for payroll testing, the incorrect amount of hours for the employees selected payroll transaction and overall, the 3 items noted were undercharged. Cause and Effect: Failure to properly review balances and reconcile payroll registers for individual pays. This led to employees being paid the incorrect amounts during the fiscal year. Recommendation: We recommend management implement procedures to ensure all expenditures are being paid to employees allocated to the program are correct for rates of pay and actual hours worked. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.