Audit 375382

Program Assistance Listing Number 10.55X - Nutrition Cluster Passed through Michigan Department of Education Questioned costs N/A - no questioned costs noted Criteria or Specific Requirement The District's internal controls, verbally communicated during the audit, stated the timesheets were to b􀀠e approved and the Superintendent is to review the payroll reports prior to processing. Condition During audit testing, it was noted that some of the timesheets did not have proper approval. Th􀀠e Superintendent receives the payroll summaries, but there is no proof of review of the document. A few􀀠 errors in pay were also noted relating to the incorrect amount paid and the rate of pay per the positio􀀠n noted did not agree. Context The internal controls are not in place to prevent and detect material misstatements. Effect Payroll could be processed for incorrect amounts that could become material to the statements. Cause The District does not have written policies and procedures to follow and they did not follow the verbal􀀠 policies and procedures noted. Recommendation We recommend having board approved written policies and procedures and following those procedures. Views of the Responsible Officials and Planned Corrective Action The Business Manager will review all the employee timesheets and contract pay and verify on the gross􀀠 pay detail reports to authorize payroll prior to finalizing submission of payroll. Internal control procedures􀀠 will be updated to reflect this process.