Audit 395287

Reference # and title: 2025-002 Internal Control and Compliance over Special Education, Title I, and Title II Payrolls Federal program and specific federal award identification: AL Number Award Year United States Department of Education; passed through Louisiana Department of Education Special Education Cluster (IDEA): Special Education Grants to States #84.027A 2025 Special Education Preschool Grants #84.173A 2025 Title I Grants to Local Educational Agencies #84.010A 2025 Title II Supporting Effective Instruction State Grants #84.367A 2025 Criteria or specific requirement: For an employee who works in part on the consolidated administrative cost objective and in part on a Federal program whose administrative funds have not been consolidated or on activities funded from other revenue sources, the School Board must maintain time and effort distribution records in accordance with 2 CFR section 200.430(i)(1)(vii) that support the portion of time and effort dedicated to (a) the consolidated cost objective, and (b) each program or other cost objective supported by non- consolidated Federal funds or other revenue sources. Employee pay should be reviewed to ensure that payment amount is correct. Employee attendance should be documented on a consistent basis. Condition found: In testing 29 payroll transactions for the Special Education program, the following exceptions were noted: 20 exceptions noted in which attendance records were not signed by the supervisor; 2 exceptions where one employee was not paid in accordance with the salary schedule, which resulted in an underpayment; 13 exceptions where time certifications were not completed in a timely manner. In testing 29 payroll transactions for the Title I program, it was noted that although the employee had a time certification, that 20 payroll transactions did not reflect a supervisor’s review of the employees’ attendance records. In testing 29 payroll transactions for the Title II program, the following exceptions were noted: 17 exceptions noted in which attendance records were not signed by a supervisor; 12 exceptions where time certifications were not completed in a timely manner; 17 exceptions where employees clock in but do not clock out; 6 exceptions where substitute teachers do not sign in for work. Possible asserted effect (cause effect): Cause: Attendance documentation and semi-annual certifications were not maintained throughout the year by the School Board. Effect: The School Board did not comply with all requirements related to allowable costs and cost principles for the Special Education, Title I, and Title II programs. Recommendations to prevent future occurrences: The School Board should strengthen policies and procedures to ensure that semi-annual time certifications are signed by all employees in a timely manner before school lets out and that employee attendance is adequately approved throughout the year. The School Board should also strengthen procedures to ensure employees’ pay is complete and accurate. Origination date and prior year reference (if applicable): For the Special Education and Title II payrolls, this finding originated in the fiscal year ended June 30, 2025. For the Title I payroll, this finding originated in the fiscal year ended June 30, 2024. View of responsible official: The School Board is evaluating current policies and procedures over semi-annual certifications and employee attendance, and also ensuring new employees are properly trained regarding these policies and procedures. In addition, the School Board is implementing electronic employee attendance software throughout the District to ensure accuracy and completeness of attendance records.