Audit 402373

During our audit of payroll expenditures charged to the federal program, we identified that an administrator had recommended her child for employment whose salary and benefits were charged to the same federal award in which she was the administrator. Payroll expenditures totaling $17,083 were recorded in the District’s governmental funds for salary and benefits paid to the related employee. An independent review of the hiring recommendation or the board approval did not identify or prevent the non-compliance The district further failed to disclose the potential conflict of interest in writing to the Mississippi Department of Education as required by 2 CFR §200.112.